(Production Possibilities) Under what conditions would an economy be operating inside its PPF? On its PPF? Outside its PPF?
(Shifting Production Possibilities) Determine whether each of the following would cause the economy s PPF to shift inward, outward, or not at all:
a. An increase in the average length of annual vacations
b. An increase in immigration
c. A decrease in the average retirement age.
d. The migration of skilled workers to other countries
(Income Effects) When moving along the demand curve, income must be assumed constant. Yet, one factor that can cause a change in the quantity demanded is the income effect. Reconcile these seemingly contradictory facts.
(Market Equilibrium) Determine whether each of the following statements is true, false, or uncertain.
a. In equilibrium, all sellers can find buyers.
b. In equilibrium, there is no pressure on the market to produce or consume more than is sold.
c. At prices above equilibrium, the quantity exchanged exceeds the quantity demanded.
d. At prices below equilibrium, the quantity traded is equal to the quantity supplied.
(Production Possibilities) Under what conditions would an economy be operating inside its PPF? On its PPF? Outside its PPF?
(Shifting Production Possibilities) Determine whether each of the following would cause the economy s PPF to shift inward, outward, or not at all:
a. An increase in the average length of annual vacations
b. An increase in immigration
c. A decrease in the average retirement age.
d. The migration of skilled workers to other countries
(Income Effects) When moving along the demand curve, income must be assumed constant. Yet, one factor that can cause a change in the quantity demanded is the income effect. Reconcile these seemingly contradictory facts.
(Market Equilibrium) Determine whether each of the following statements is true, false, or uncertain.
a. In equilibrium, all sellers can find buyers.
b. In equilibrium, there is no pressure on the market to produce or consume more than is sold.
c. At prices above equilibrium, the quantity exchanged exceeds the quantity demanded.
d. At prices below equilibrium, the quantity traded is equal to the quantity supplied.
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