As you move down the production possibility frontier, the absolute value of the marginal rate of transformation
A. increases.
B. initially decreases, then increases.
C. decreases.
D. initially increases, then decreases.
Answer: A
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Pick the true statement from your textbook:
A) Land has a cost. B) Fruit has a cost. C) Fertilizer has a cost. D) Only actions can have costs.
An autonomous depreciation of the U.S. dollar makes American goods ________ relative to foreign goods and results in a ________ in U.S. net exports, everything else held constant
A) cheaper; decline B) cheaper; rise C) more expensive; decline D) more expensive; rise
Suppose sport utility vehicles get poor gas mileage compared to other available cars. If the price of gasoline increases, then one would then expect:
A. the demand for gasoline to decrease. B. the demand for sport utility vehicles to increase. C. the demand for sport utility vehicles to decrease. D. the quantity demanded of sport utility vehicles to decrease.
Which of the following is true?
A) Domestic policies are never barriers to trade. B) Tariffs and quotas in industrial nations are significantly higher now than they were in 1950. C) Tariffs and quotas are the primary trade barrier in industrialized countries. D) Domestic policies intended to protect consumers or the environment may become trade barriers.