If the price of an input decreases, each individual firm?s marginal cost curve shifts ________ and the industry supply curve ________.
A. downward; shifts to the left
B. downward; shifts to the right
C. up; shifts to the left
D. up; does not change
Answer: B
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The United States was able to produce temporarily outside its production possibilities curve for several years during World War II by doing which of the following?
A. Recruiting housewives to work in tank and airplane factories. B. Convincing workers who qualified for retirement to put off retirement. C. Pressing older machinery and equipment into use. D. Expansion of the work week. E. All of the choices are true
If Honduras were to subsidize the production of wool blankets and sell them in Sweden at artificially low prices, the Swedish economy would be worse off
a. True b. False Indicate whether the statement is true or false