Improvements in and greater stocks of land, labor, capital, and entrepreneurial activity will shift the production possibilities curve:
a. outward, such that more goods and services can be produced
b. outward, such that the cost-of-living rises.
c. inward, such that the marketplace experiences a decrease in price and output levels.
d. inward, because more resources will be used up and not renewed.
a
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Suppose that over the next few years, the demand for dancing to country and western music decreases. Hence, at country and western dance clubs, the equilibrium price of admission ________, and the equilibrium quantity of dancing ________
A) rises; increases B) falls; increases C) rises; decreases D) falls; decreases E) does not change; decreases
When personal computers were first produced, the price was very high. As time passed, the price of personal computers fell because
A) the initial price was too high and nobody bought personal computers. B) people's incomes increased and personal computers are an inferior good. C) the demand for personal computers decreased. D) there were technological advances in the production of personal computers. E) None of the above answers is correct.