A production possibilities curve with quantities of clothing and food on the axes shows which of the following?
I. A society cannot have an unlimited amount of each good.
II. For an efficient society, an increase in clothing production will necessitate a decrease in food production.
III. A society will always produce the maximum amount of both clothing and food.
A) I only
B) II only
C) III only
D) Both I and II
D
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If the population increases and input prices increase, the equilibrium price of a product will definitely increase
Indicate whether the statement is true or false
Suppose the price of gold is $300 per ounce in the United States and 2,400 pesos per ounce in Mexico. If purchasing power parity holds then, if the price of oil is 200 pesos per barrel in Mexico, the price of oil is ________ per barrel in the United States.
A. $80 B. $36 C. $1,600 D. $25