In the long run, immigration will shift the sending country's production possibilities frontier inward. This shift will cause:
a. a larger decline in the potential output of the capitalintensive good.
b. a larger decline in the potential output of the labor intensive good.
c. equal declines in the potential output of both the laborintensive and the capitalintensive good.
d. a decline in the potential output of the labor intensive good and an increase in the potential output of the capitalintensive good.
Ans: b. a larger decline in the potential output of the labor intensive good.
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Why do convex indifference curve have a negative slope?
A) because to keep utility constant, a consumer must get more of one good if she is to give up some of the other B) because scarcity implies that it is not possible to consume more of one good without giving up some of the other C) because consumers take market prices as given D) because consumers face a budget constraint
At the current level of output, a firm's marginal cost equals 16 and marginal revenue equals 10. The firm
A) is producing the profit-maximizing amount. B) should produce more. C) should produce less. D) Not enough information.