Refer to Figure 11-4. Suppose the per-worker production function in the figure above represents the production function for the U.S. economy
If the United States decided to cut its support of university research in half, this would cause a movement from
A) B to E. B) B to D. C) B to A. D) B to C.
A
You might also like to view...
Which of the following is correct?
a. Inflation impedes financial markets in their role of allocating savings to alternative investments. b. Inflation encourages savings through the tax treatment on capital gains. c. Inflation encourages larger holdings of currency by the public. d. Inflation reduces people's real purchasing power.
Refer to Budget Lines. If the consumer purchased basket B last year and purchases basket C this year, we can conclude that
a. the consumer is not behaving optimally.
b. the consumer's tastes changed between this year and last year.
c. the consumer's indifference curves cannot be convex.
d. the law of demand does not hold for this consumer.