When a country allows trade and becomes an importer of a good,
a. consumer surplus and producer surplus both increase.
b. consumer surplus and producer surplus both decrease.
c. consumer surplus increases and producer surplus decreases.
d. consumer surplus decreases and producer surplus increases.
c
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In a production possibilities frontier diagram, the attainable production points are shown as
A) the points inside and the points on the production possibilities frontier. B) only the points inside the production possibilities frontier. C) any of the production points. D) only the points beyond the production possibilities frontier. E) only the points on the production possibilities frontier.
Which of the following factors pushes the per-worker production function of an economy downward?
a. A stable political environment b. A high risk of terror attack c. An increase in educated workforce in the country d. An increase in road networks in the country e. A law encouraging foreign investment