Which of the following will shift an economy's production possibilities curve outward?

Select one:

a.

An increase in the unemployment rate.

b.

A decrease in land, labor, or capital.

c.

A decrease in the unemployment rate.

d.

An improvement in technology.

Suppose there is a decrease in the price of herbicides and pesticides used in the production of barley. All other things being equal, the equilibrium price of barley will _______, and equilibrium quantity will _______. And suppose barely and hops are complements. After the change in the barley market occurs, all other things being equal, it follows that the equilibrium price of hops will _______, and equilibrium quantity will _______.

Select one:

a.

increase; decrease; increase; decrease

b.

decrease; increase; decrease; decrease

c.

decrease; increase; increase; increase

d.

increase; increase; decrease; increase

This past year, a sharp decrease in Japanese demand for U.S. dollars resulted in a decline in the exchange rate of the dollar from 145 yen to 100 yen per dollar. Other things being equal, which of the following will result from the decline in the value of the dollar in terms of yen?

Select one:

a.An increase in the yen price of U.S. Boeing 767 aircraft exported to Japan.

b.An increase in the yen price of U.S. exports to Japan. but no change in the dollar price of Japanese imported products in the U.S.

c.A decrease in the dollar price of Japanese cars imported to the U.S.

d.

An increase in the dollar price of Japanese cars imported to the U.S.

In a market characterized by a downward-sloping demand curve and an upward-sloping supply curve, a per-unit tax placed on the sellers of a good will

Select one:

a.not increase price at all.

b.fail to yield any tax revenue to the government.

c.increase the price of the good by the full amount of the tax.

d.hurt sellers and help consumers.

e.None of the above.

The price elasticity of demand for Bart Simpson watches is -3. A 5% increase in the price of the watches will cause the quantity demanded to

Select one:

a.increase.

b.decrease by 15%.

c.decrease by 5%.

d.decrease by 3%.

A 64-cent-per-liter tax is levied on bourbon. The tax will result in a 64-cent increase in the price of a liter of bourbon if

Select one:

a.the demand for bourbon is perfectly inelastic.

b.the supply of bourbon is perfectly inelastic.

c.the supply of bourbon is perfectly elastic.

d.the demand for bourbon is perfectly elastic.

e.Either (a) or (c).

A $4-per-unit tax is placed on the sellers of good Y, which has a perfectly inelastic demand curve and an upward-sloping supply curve. The before-tax equilibrium price of good Y is $50, and the equilibrium quantity is 200 units. What is the total government revenue from the tax?

Select one:

a.

$760.

b.

$780.

c.

$800.

d.

$820.