Marti is an economic adviser for a country that is using this production possibilities curve. She decides she would like to see the production possibilities curve move to point N. How can this be done?
a. Use all facilities currently available.
b. Hire everyone who is unemployed.
c. Make sure everyone is doing what they do best.
d. Invent a new, more advanced production method.
d. Invent a new, more advanced production method.
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In order for large countries to successfully use tariffs to increase well being,
A) they must have significant market power so that foreign firms will cut prices to preserve their sales. B) the deadweight loss created by the tariff must be greater than the government revenue the tariff generates. C) domestic production must increase more significantly than for the small country case. D) domestic consumption and imports must decrease more significantly than in the small country case.
Sugar and honey are viewed as substitutes for each other in many cooking applications. If the price of sugar rises, we would expect
a. the demand for honey to increase b. the demand for honey to decrease c. the quantity demanded of honey to decrease d. the price of honey to decrease e. the quantity demanded of honey to increase