A firm producing calculators and cell phones purchases new machinery that increases the productivity of producing calculators
Assuming that the number of calculators produced is measured on the horizontal axis and the number of cell phones produced is measured on the vertical axis, how will the introduction of the new machinery change the firm's production possibilities curve? A) The production possibilities curve will shift to the left.
B) The production possibilities curve will shift rightward.
C) The production possibilities curve will pivot rightward about the vertical axis.
D) The production possibilities curve will pivot rightward about the horizontal axis.
D
You might also like to view...
Answer the following statement(s) true (T) or false (F)
1. When the law of supply holds, an increase in the price of a product will cause producers to increase the quantity they wish to sell. 2. A rise in supply is illustrated by a rightward shift in the supply curve. 3. The supply curve for a commodity will shift downward when an excise tax is imposed. 4. An increase in the price of wheat will cause a rise in the supply of wheat. 5. When the actual market price is below its equilibrium level, suppliers are satisfied but demanders are not.
Interest rate parity is more likely to hold in the short run than purchasing power parity
Indicate whether the statement is true or false
It is always in the interests of workers for the minimum wage to be as high as possible.
Answer the following statement true (T) or false (F)
Let ? represent labor's share of total output. The Solow residual is, therefore, represented by
A) ?gy. B) ?gA. C) ?gK. D) ?gN. E) 1/?.