If we assume only one factor (labor), we can demonstrate on the PPF the opportunity cost of producing less of one good and more of the other good by:
a. taking the sum of the marginal products of labor for the two goods.
b. taking the difference of the marginal products of labor for the two goods.
c. taking the ratio of the marginal products of labor for the two goods times -1.
d. taking the average of the marginal products of labor for the two goods.
Ans: c. taking the ratio of the marginal products of labor for the two goods times -1
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The experience of the HPAEs has brought attention to predictions about income inequality made by Kuznets. He predicted that at first income inequality would ________ as economies began to develop. In the HPAEs experience it ________
A) rise; rose B) decrease; decreased C) rise; fell D) fall; rose E) There was no pattern.
The cartel consisting of Firm A and Firm B can become unstable if: a. Firm A manages to enhance the quality of its product. b. both the firm sell homogeneous products
c. Firm B decides to decrease its output. d. both firms decide to decrease industry output.