Suppose that a good that was formerly an import becomes an export, perhaps after an import substitution and export promotion strategy. How is this change reflected in the production possibility frontier?
What will be an ideal response?
The good that was on the import axis, now is found on the export axis. Leaving the goods on the same axes as before, with the import on the y-axis, the ppf becomes more bowed
out toward and further up this axis.
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Why has there been an increase in the inequality of income?
a. The demand for skilled workers has declined. b. The demand for skilled workers has remained constant and the demand for unskilled workers has declined. c. The government policies went against the unskilled workers. d. The demand for skilled workers has increased and the demand for unskilled workers has not kept pace. e. The demand for unskilled workers has increased as they could be hired for lower wages.
The opportunity cost of going to college includes: a. both tuition and the value of the student's time
b. tuition, but not the value of the student's time, which is a non-monetary cost. c. neither tuition nor the value of the student's time, since obtaining a college degree makes one's income higher in the future. d. neither tuition nor the value of the student's time, at least at state-supported universities and colleges.