At a given level of wheat output, one more unit of labor would produce 10 extra bushels, and one more unit of seed would produce 30 extra bushels. A unit of labor costs $6, and a unit of seed costs $12. The farmer should
A. produce less wheat.
B. buy only seed.
C. buy more seed and less labor.
D. buy less seed and more labor.
Answer: C
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Which of the following statements is not correct?
A. An increase in a nation's labor supply will cause its potential output to increase B. Economic growth can be illustrated by an expansion of a nation's production possibilities curve C. An increase in the quantity of a nation's resources will cause economic growth, but an increase in the quality of resources will not D. New technologies or new ways of producing output can cause a nation's production possibilities curve to shift outwards
An inward shift of the demand curve for a product causes outward shifts in the demand curves for all the factors used to produce the product.
Answer the following statement true (T) or false (F)