Suppose that a country with a bowed-out PPF is operating efficiently. The country can produce either capital-intensive goods or labor-intensive goods. If the country DECREASES its production of labor-intensive goods, the opportunity cost of producing labor-intensivegoodsdecreases.increases.remains constant.cannot be determined from the given information. Under autarky, producing goods at a price below the market equilibrium price isO efficient because consumer surplus is maximized.inefficient because producer surplus is smaller than consumer surplus.efficient because total surplus is maximized.O inefficient because there are consumers willing to pay more than the cost of producing the good.

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Suppose that a country with a bowed-out PPF is operating efficiently. The country can produce either capital-intensive goods or labor- intensive goods. If the country DECREASES its production of labor-intensive goods, the opportunity cost of producing labor-intensive goods O decreases. O increases. o remains constant. O cannot be determined from the given information.

Suppose that a country with a bowed-out PPF is operating efficiently. The country can produce either capital-intensive goods or labor- intensive goods. If the country DECREASES its production of labor-intensive goods, the opportunity cost of producing labor-intensive goods O decreases. O increases. o remains constant. O cannot be determined from the given information.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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