Compare two economies A and B that start with identical production possibilities curves. Both are fully employed. Economy A chooses to produce 6 consumption goods and 3 capital goods, while economy B chooses 4 consumption goods and 5 capital goods. This information suggests that
a. economy A is producing less efficiently than economy B
b. economy B is producing less efficiently than economy A
c. economy A and economy B, although producing different combinations, grow at thesame rate because they are both fully employed
d. economy A's growth rate will be higher than economy B's
e. economy B's growth rate will be higher than economy A's
E
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A clear conclusion from offshoring debates and analyses is that:
a. Offshoring increases overall unemployment in the nation from which offshoring takes place. b. Offshoring's main effect is to decrease GDP in the nation from which offshoring takes. c. Offshoring could increase or decrease unemployment in the nation from which it takes place; the result depends on the circumstances. d. Offshoring results in net losses to the global economic community.
Charlotte can produce pork and beans and can switch between producing them at a constant rate. If it takes her 10 hours to produce a pound of pork and 5 hours to produce a pound of beans, what is her opportunity cost of pork and what is her opportunity cost of beans?