Questions 1 An indifference curve is Group of answer choices the different combination of two goods that can be purchased with a given amount of income. a locus of bundles of goods such that the producer is indifferent between each good in every bundle. the different combination of capital and labour that can be purchased with a given amount of money. a locus of bundles of goods such that the consumer is indifferent between each good in every bundle.
Questions 1 An indifference curve is
Group of answer choices
the different combination of two goods that can be purchased with a given amount of income.
a locus of bundles of goods such that the producer is indifferent between each good in every bundle.
the different combination of capital and labour that can be purchased with a given amount of money.
a locus of bundles of goods such that the consumer is indifferent between each good in every bundle.
Question 2
If a country has a concave or bowed out production possibilities frontier, then production is said to be subject to
Group of answer choices
constant
the law of diminishing returns
decreasing opportunity costs
increasing opportunity costs
Question 3
Assume that two countries (Home and Foreign) each produce two goods (corn and wheat) under constant cost of production. Home produces 0.5 ton of corn or 1 ton of wheat with a day of labor. Without trade (in autarky), Home's daily production is 20 tons of wheat and 10 tons of corn. What is Home's price ratio (price of wheat/price of corn) in autarky?
Group of answer choices
0.5
1.5
2
1
Question 4
Assume that Australia has only two sectors, i.e. agriculture and manufacturing. There are also two specific factors in the short run. Land is the specific factor in agriculture and capital is a specific factor in manufacturing. Labor is mobile between the two sectors. Suppose Australia has
Group of answer choices
Correct answer not available
increase at the same rate as
decreases faster than
increase slower than
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