If the production possibilities frontier between bottled water and water in a jug is a straight line, which of the following statements would be correct?
A) Resources are equally productive at producing either product.
B) There is no decrease in the production of one good when the production of the other is increased.
C) There is no tradeoff between the two goods.
D) A large amount of unemployment must exist.
E) Producing more of one good gives the economy a free lunch.
A
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Many Southern farmers face a choice between planting peanuts or cotton. In 2014, farmers anticipated higher prices for cotton
In the market for peanuts in 2014, there would be ________ in the supply of peanuts, which leads to ________ in the price of peanuts and ________ in the quantity of peanuts. A) a decrease; an increase;a decrease B) an increase; a decrease; a decrease C) a decrease; an increase; an increase D) an increase; an increase; a decrease
Which of the following goods is most likely to have a negative income elasticity of demand?
a. Automobiles b. Bargain brand noodles c. Shoes d. Fine Jewelry