Suppose that country A produces mostly consumption goods and few investment goods, while country B produces mostly investment goods with few consumption goods. Other things constant, which of the following is most likely to happen in the future?
a. The per capita income of country A will grow more rapidly than country B.
b. The population of country B will grow more rapidly than country A.
c. The production possibilities curve (PPC) of country B will shift out more rapidly than the PPC of country A.
d. The production possibilities curve (PPC) of country A will shift out more rapidly than the PPC of country B.
C
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In situations where new technologies are considered complementary to workers, demand for these workers will ________, resulting in ________ in the equilibrium wage
A) decrease; a decrease B) increase; a decrease C) increase; an increase D) decrease; an increase
Restrictions on the importation of tomatoes reduce the supply available to the U.S. domestic market. Studies indicate that the demand for tomatoes is elastic. Compared to a free-trade situation, the import restrictions cause
a. higher tomato prices and an increase in consumer expenditures on tomatoes in the United States. b. lower tomato prices and an increase in consumer expenditure on tomatoes in the United States. c. lower tomato prices and a reduction in consumer expenditure on tomatoes in the United States. d. higher tomato prices and a reduction in consumer expenditure on tomatoes in the United States.