Which of the following will most likely cause an outward shift in the production possibilities curve?
a. a reduction in the man-made productive resources available to the economy as the result of a decline in investment
b. an increase in government payments to farmers for taking land out of production
c. an increase from 40 to 50 hours in the average number of hours worked per week
d. None of the above would cause an outward shift in the production possibilities curve.
C
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If the production possibilities frontier is ________, then opportunity costs are constant as more of one good is produced
A) bowed out B) linear C) bowed in D) non-linear
Lisa views pizzas and burritos as goods. If she prefers a bundle of 4 burritos and 4 pizzas to a bundle of 4 burritos and 5 pizzas, which property of consumer preference is violated?
What change in the assumptions could lead a rational consumer to prefer the first bundle?
The study by economists Cox and Alm found that the 2006 pre-tax income of the richest fifth of U.S. households is
a. 5 times the pre-tax income of the poorest fifth. b. 10 times the pre-tax income of the poorest fifth. c. 15 times the pre-tax income of the poorest fifth. d. 20 times the pre-tax income of the poorest fifth.
Lower taxes on businesses will shift the aggregate:
A. demand curve rightward. B. demand curve leftward. C. supply curve rightward. D. supply curve leftward.