If the supply curve remains constant, an outward shift in the demand curve for a commodity causes the price of factors used in its production to decline

a. True
b. False
Indicate whether the statement is true or false

False

Economics

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The United States uses tax funds to build and repair the interstate highway system and to provide health care services via Medicare. Suppose Medicare services are on the horizontal axis and highway miles are on the vertical axis of a PPF

If the government decides to reduce funding to Medicare, this change would be shown as A) a shift out of the PPF. B) the PPF becoming flatter. C) a movement down along the PPF. D) a movement up along the PPF.

Economics

If James has a utility curve characterized by the function of U = 2X 3 Y 2 , what is his marginal rate of substitution between goods X and Y?

What will be an ideal response?

Economics