The typical production possibilities curve is:
A. an upsloping line that is bowed out from the origin.
B. a downsloping line that is bowed in toward the origin.
C. a downsloping line that is bowed out from the origin.
D. a straight upsloping line.
Answer: C
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Which of the following is correct? a. U.S. International trade represents about 50 percent of U.S. GDP
b. Less than 5 percent of world output is sold in a country different from the one in which it is produced. c. Without tariff protection the number of jobs available to domestic workers would decline. d. The volume of international trade has grown rapidly.
Suppose that 50 ice cream cones are demanded at a particular price. If the price of ice cream cones rises from that price by 4 percent, the number of ice cream cones demanded falls to 46 . Using the midpoint approach to calculate the price elasticity of demand, it follows that the
a. demand for ice cream cones in this price range is elastic. b. demand for ice cream cones in this price range is inelastic. c. demand for ice cream cones in this price range is unit elastic. d. price elasticity of demand for ice cream cones in this price range is 0.