A production possibilities frontier separates an attainable region from an unattainable region
Indicate whether the statement is true or false
True
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All of the following costs will vary depending on the geographic location of a firm's plant except which one?
A) zoning issues B) Federal employee taxes C) traffic regulations involving large trucks D) real estate values
Suppose that Big-Cat and Fat-Cat are rival cat food brands, and the price of Fat-Cat is reduced. Following this price drop, is there a shortage or a surplus of Big-Cat at the old price of Big-Cat?
a. Surplus. b. Neither, a price drop can not cause a shortage or surplus. c. Neither, equilibrium exists. d. Shortage.
Which of the following events is likely to generate a supply of U.S. dollars in the foreign exchange market?
A) A Saudi Arabian citizen buys a condominium in New York. B) An American student will pay her way to attend her first year of college at Oxford, England. C) Alabama Mills exports 5,000 bales of cotton to Pakistan. D) Hans Meyer, a German citizen, plans to spend a month in California, sampling wines
Assume that Country A provides a subsidy on its exports to Country B. Country B is about to impose a countervailing duty (of the same magnitude as the export subsidy) on the imports from Country A. Which of the following statements is true in this context?
A. The exporters in Country A gain surplus when the government of Country B imposes a countervailing duty. B. The consumers in Country B are better off after the government of Country B imposes a countervailing duty. C. The import-competing producers in Country B are worse off after the imposition of the countervailing duty by the government. D. The overall national well-being of Country B would be lower when the domestic government imposes a countervailing duty to offset the impact of the export subsidy.