If a factor of production comes to have more and more alternative uses, its supply curve to any one use

a. remains unchanged.
b. becomes more inelastic.
c. becomes more elastic.
d. may move in any direction.

c

Economics

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When the principle of comparative advantage is used to guide trade, then a country specializes in producing only

A) goods with the highest opportunity cost. B) goods with the lowest opportunity costs. C) goods for which production takes fewer worker-hour than another country. D) goods for which production costs are more than average total costs.

Economics

Because of diminishing returns, an economy can continue to increase real GDP per hour worked only if

A) the per-worker production function shifts downward. B) there is technological change. C) there are decreases in human capital. D) there continue to be decreases in capital per hour worked.

Economics