If the relative market price of producing cotton is more than the opportunity cost of producing it in the South,
(a) the market price of cotton will fall in the long run.
(b) producers will increase the supply of cotton in the long run.
(c) resources will flow away from the production of cotton, causing the supply of it to decline with the passage of time.
(d) the situation will remain unchanged as long as supply and demand remain in balance.
(b)
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During the last four decades, the share of health-care expenditures paid for by third parties (either the government or insurance companies)
a. has remained relatively constant. b. fell from approximately 60 percent in 1960 to 30 percent in 2007. c. increased from approximately 45 percent in 1960 to over 85 percent in 2007. d. declined during the 15 years following the passage of Medicare but has been increasing since 1980.
Refer to Figure 5.3. Which of the following statements is false?
A. Points a, b and c all represent best choices for the consumer.
B. It is possible for the consumer to afford better bundles than a.
C. Point b satisfies the tangency condition.
D. It is possible for the consumer to afford better bundles than c.