What happens to a country's production possibility frontier if it experiences a natural disaster such as a hurricane or an earthquake? Explain
What will be an ideal response?
The production possibility frontier will shift in. This occurs because the destruction from the hurricane or earthquake likely destroys resources such as capital and natural resources that are used to produce goods and services. Since the quantity of resources in the country is now lower, the country will not be able to produce as much output.
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The Herfindahl-Hirschman Index measures an industry's concentration of
A) employment. B) sales. C) profits. D) productive capital.
The real exchange rate is the nominal exchange rate, defined as foreign currency per dollar, times
a. U.S. prices minus foreign prices. b. U.S. prices divided by foreign prices. c. foreign prices divided by U.S. prices. d. None of the above is correct.