The economy is currently on its production possibilities frontier (PPF). A politician says that it is possible to get more of everything---more infrastructure, more schools, more national defense, more spending on social programs, and so on. The politician is
What will be an ideal response?
correct if he is assuming a rightward-shifting PPF.
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If Norwegian workers are more productive than Albanian workers, then trade between Norway and Albania
A) will take place so long as each country has a comparative advantage in a good or service that buyers in the other country want. B) cannot take place until Albanian workers become more productive. C) can take place only if Albania has an absolute advantage in producing a good or service Norwegian buyers want. D) cannot take place because Norwegian goods and services will be less expensive than Albanian goods and services.
Any terms of trade within the limits set by domestic opportunity costs will be mutually harmful, because each country tries to push the other as close to the limits of the terms of trade as possible
a. True b. False Indicate whether the statement is true or false
One In the News article titled "Funeral Giant Moves In on Small Rivals" reports that profit for a Houston-based funeral giant is 31 cents on every dollar versus a profit of 12 cents for the funeral industry in general. Such profits are most likely the result of
A. A downward shift in the production function. B. Economies of scale. C. Higher minimum average costs. D. Constant returns to scale.
Refer to the below graph. The producer illustrated:
A. Is a monopsonist since MR = P for every unit of output sold
B. Is a pure competitor in the output market, since it must charge a constant price
C. Hires labor as a monopsonist, since it has control over the market wage rate
D. Hires labor in a competitive market, since it must pay each worker the market wage rate