A grower of commercial Christmas trees can raise blue spruce and Douglas fir. Therefore, an increase in the expected market price of Douglas firs tends to
A) reduce the planting of Douglas firs.
B) reduce the planting of blue spruce trees.
C) increase the cost of planting Douglas firs.
D) do none of the above.
B
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The figure above illustrates a small country's production possibilities frontier. Based on the figure, we can tell that the nation's resources are
A) not equally productive in all tasks because the production possibilities frontier is bowed out. B) unlimited because the slope is negative and the PPF is bowed out. C) equally productive in all tasks because the slope is negative. D) not equally productive in all tasks because the slope is negative. E) equally productive in all tasks because the production possibilities frontier is bowed out.
Government certification of the weights and measures used in business can be justified because
A) no business operated for profit would have any interest in weighing and measuring accurately. B) people cannot be trusted. C) government officials, unlike private parties selling for profit, have no incentive to cheat. D) it reduces total transaction costs below what they would be if all individual buyers or sellers had to check for themselves.