As the relative price paid to a resource in a particular use rises,
a. resources will be drawn from lower-valued uses to higher-valued uses
b. resources will be drawn from higher-valued uses to lower-valued uses
c. resources will generally remain where they are currently employed
d. the supply of that resource will shift to the right
e. the supply of that resource will shift to the left
A
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Assume that velocity is constant in the long run. Which of the following equations correctly describes the quantity equation in terms of percentage rate of change
A. % chM รท % chP = % chY B. % chM - % chY = % chP C. % chM x % chY = % chP D. % chM - % chP = % chYf
After the terrorist attacks on September 11, 2001, the United States began devoting substantial resources toward the War on Terrorism, homeland security, and relief efforts. As long as our resources were being used efficiently, the production possibilities curve would suggest that:
a. we will have to give up the production of other goods that could have been produced with these resources. b. we will be able to produce the same amount of other goods as before. c. the military spending will result in an outward shift in the production possibilities curve but that the relief effort will result in an offsetting inward shift. d. we will be unable to devote the resources necessary toward these efforts unless there is an improvement in technology.