A production possibilities curve has "good X" on the horizontal axis and "good Y" on the vertical axis. On this diagram, the opportunity cost of good X, in terms of good Y, is represented by the:
A. distance to the curve from the horizontal axis.
B. distance to the curve from the vertical axis.
C. distance from the origin to the curve.
D. change in Y for each change in X along the curve.
Answer: D
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Describe the changes in the variables that will cause the demand for a product to decrease, shifting the demand curve to the left
What will be an ideal response?
Suppose union workers are earning more than similarly qualified nonunion workers. From this, we can conclude that
A) unemployment of union workers must have increased. B) unemployment of nonunion workers must have increased. C) productivity of union workers must be greater than the productivity of nonunion workers. D) Any of the above are possible and we cannot tell which without having more information.