Assume that society is operating on its concave production possibilities frontier. As more and more units of the good on the horizontal axis are produced,
a. more and more total resources are employed in the two industries combined
b. larger and larger amounts of the good on the vertical axis must be sacrificed
c. fewer and fewer total resources are employed in the two industries combined
d. more and more units of the good on the vertical axis will be produced
e. smaller and smaller amounts of the good on the vertical axis must be sacrificed
B
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In the figure above, which of the following represents a real flow of a factor of production?
A) Labor B) Wages C) Goods bought D) Services sold E) Firms' expenditures on factors of production
If both the demand curve and the supply curve shift to the right, we can unambiguously conclude that the
A) market clearing price will increase. B) market clearing price will decrease. C) equilibrium quantity will increase. D) equilibrium quantity will decrease.