Given freedom of movement for both goods and resources, if Florida producers specialize in oranges and Georgia producers specialize in peaches, it would be reasonable to conclude that
a. the opportunity cost of growing oranges is higher in Florida than in Georgia.
b. Georgia has a comparative advantage in producing oranges.
c. Florida has a comparative advantage in producing oranges.
d. total output will be expanded when Georgia allocates more resources to producing oranges and Florida allocates more resources to producing peaches.
C
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The natural rate of unemployment includes frictional, cyclical, and structural unemployment
a. True b. False Indicate whether the statement is true or false
In the short run, a decrease in the price level: a. decreases output prices relative to input prices. b. increases the profit margins of many producers. c. decreases RGDP supplied
d. both (a) and (c)
Refer to the accompanying figure. Suppose a consumer protection group convinces the government to impose price controls in this market. If the government requires cheese to be sold for less than the equilibrium price, then, relative to before the price controls, total consumer surplus in the market:
A. would increase because consumers would be able to purchase more cheese at a lower price. B. would increase because consumers would be able to purchase the same quantity of cheese at a lower price. C. would decrease because of the reduction in equilibrium price. D. could either increase or decrease.
Refer to the above figure. An external cost exists. The amount of that cost is represented by
A. P2. B. the vertical distance between point A and the supply curve S1. C. Q1. D. the distance between C and A.