Figure 2-2
Assume that U.S. agricultural land is used either to raise cattle for beef or to grow wheat. represents the production possibility frontier for beef and wheat. Between points F and G, the opportunity cost increasing wheat by two bushels equals
a.
0.25 million pounds of beef
b.
1.75 million pounds of beef
c.
0.125 pounds of beef
d.
8.0 pounds of beef
e.
0.5 pounds of beef
a
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When a single candidate is chosen by majority vote in a democracy, the political systems _____
a. tend to become corrupted b. tend to be two-party systems c. tend to be one-party systems d. tend to be three-party systems
Say that the equilibrium price of natural gas would be $5 per thousand cubic feet, but there is a price floor imposed at $7 per thousand cubic feet. That price floor is then lowered to $5 per thousand cubic feet. As a result, a. the shortage of natural gas will get worse
b. the shortage of natural gas will get less severe. c. the surplus of natural gas will get worse. d. the surplus of natural gas will be eliminated.