PS1 - Opportunity Costs, PPF, Comparative Advantage PS 1)...

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Opportunity Costs, PPF, Comparative Advantage PS 1) The statement that the U.S. inflation rate is 5 percent is an example  of a a. positive statement. b. normative statement. c. statistical fallacy. d. prediction. 2) If a good is scarce, then: a. the item has an unlimited supply. b. people want more than the total amount freely available. c. the item is a luxury. d. the amount available exceeds the amount people want. e. more of it must be produced to eliminate the scarcity. 3) Suppose an economy produces two goods, food and machines. This  economy always operates on its production possibilities frontier. Last year,  it produced 50 units of food and 30 machines. This year it experienced a  technological advance in its machine-making industry. As a result, this year  the society wants to produce 55 units of food and 30 machines. Which of the  following statements is true? a.
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This note was uploaded on 03/31/2008 for the course ECON 2010 taught by Professor Mertens,wi during the Fall '07 term at Colorado.

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PS1 - Opportunity Costs, PPF, Comparative Advantage PS 1)...

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