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D Question 1 Question 6 2 pts A Production Possibilities Frontier When there is a surplus in a market, sellers will be a straight line when the opportunity cost is constant O raise price, which increases quantity demanded and decreases quantity supplied, until the surplus is eliminated. O will be bowed outward when there is economic growth O raise price, which decreases quantity demanded and increases quantity supplied, until the surplus is eliminated. lower price, which increases quantity demanded and decreases quantity supplied, until the surplus is eliminated. O will be a straight line if the opportunity cost is increasing lower price, which decreases quantity demanded and increases quantity supplied, until the surplus is eliminated. O will shift to the right if the opportunity cost decreases D Question 2 2 pts Question 7 If there is an increase in supply, A large forest fire in Washington kills many apple trees. As a result of the fire, the consumer surplus in the market for apples (hint what will happen to the price?) the supply curve will shift to the left causing the price to decrease O increases, and the producer surplus in the market for apple juice increases. the supply curve will shift to the right causing the price to decrease. O increases, and the producer surplus in the market for apple juice decreases. there will be a movement along the supply curve decreases, and the producer surplus in the market for apple juice decreases. O the supply curve will be upward sloping O decreases, and the producer surplus in the market for apple juice increases. D Question 4 2 pts Question 8 Which of the following is not correct? A government policy that prevents the price of a good or service from falling below a specified level is called a The producer who requires a smaller quantity of inputs to produce a good is said to have an absolute advantage in producing price [ Select and usually results in [ Select ] that good. [Select ] floor The producer who gives up less of other goods to produce Good X has the smaller opportunity cost of producing Good X. ceiling wall The producer who has the smaller opportunity cost of producing a good is said to have a comparative advantage in producing roof that good. The gains from specialization and trade are based not on comparative advantage but on absolute advantage. D Question 8 A government policy that prevents the price of a good or service from falling below a specified level is called a D Question 5 2 pts price [ Select ] and usually results in [Select ] [Select ] shortage Trade between countries decrease surplus ncrease O allows each country to consume at a point outside its production possibilities frontier. D Question 9 2 pt O limits a country's ability to produce goods and services on its own. O must benefit both countries equally; otherwise, trade is not mutually beneficial. If there is a decrease in demand, we would expect can best be understood by examining the countries' absolute advantages. O the demand curve to shift to the right, the pri id the quantity to increase O the demand curve to shift to the right, the price to increase, and the quantity to decrease the demand curve to shift to the left, the price to decrease, and the quantity to increase the demand curve to shift to the left, the price to decrease, and the quantity to decrease