A small Caribbean island-country produces only pineapples and rum. If resources are used efficiently in the economy,
A. it will not be possible to produce more rum without decreasing the production of pineapples.
B. it will be possible to produce more pineapples without decreasing the production of rum.
C. it will be producing on its production possibilities curve.
D. it will not be possible to produce more rum without decreasing the production of pineapples AND it will be producing on its production possibilities curve.
D. it will not be possible to produce more rum without decreasing the production of pineapples AND it will be producing on its production possibilities curve.
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Emma consumes only hot dogs and hamburgers. She is at her consumer equilibrium. Hot dogs and hamburgers have the same marginal utility. Thus
A) her total utility from all the hot dogs eaten must be the same as her total utility from all the hamburgers eaten. B) the price of a hot dog and the price of a hamburger must be the same. C) she must be eating the same number of hot dogs and hamburgers. D) Both answers B and C are correct.
The bulk of the decline in the natural rate of unemployment from 1980 to 2000 is because of
A) a decline in the inflation rate. B) a decline in the share of young workers in the labor force. C) increased competition from foreign workers. D) the depreciation of the dollar relative to foreign currencies.