Refer to the above figure. Which of the following would allow society to move to point d?
A) producing efficiently
B) concentrating production in wheat
C) increasing the quantity of labor
D) using the best land to produce wheat and the lower quality land to produce beans
C
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Suppose a commodity market is initially in equilibrium. An increase in the nation's skilled labor force then lowers the marginal cost of producing each unit of output. Which of the following changes will be observed?
a. The demand curve will shift upward b. The supply curve will shift downward c. The demand curve will shift downward d. The supply curve will shift upward
Deviations from purchasing power parity will be increasingly higher as international trade tariffs become more restrictive. The main reason for this phenomenon is that:
a. arbitrage activities become less profitable. b. governments prefer purchasing power parity not to hold. c. the interest rate parity fails to hold. d. goods become more differentiated across countries. e. individuals develop hatred toward closed economies.