An inefficient allocation of resources or unusually high unemployment:
a. causes the production possibilities curve to shift inward
b. causes the production possibilities curve to shift outward.
c. can each be illustrated by a point inside the production possibilities curve.
d. can each be illustrated by a point outside the production possibilities curve.
c
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The Erie Canal provided the first reliable and relatively quick east-west link in markets. This link, consequently,
(a) increased profit margins and expanded markets for agriculturalists. (b) increased consumer prices in all markets. (c) increased transportation costs. (d) hindered trade and the accumulation of wealth.
Since advertising increases a firm's average total cost, consumers ultimately pay for the cost of advertising in the form of a higher price in the long run. It is not possible for a firm to end up with a lower profit-maximizing price as the result of advertising
a. True b. False