In Figure 3-5, if the initial demand for margarine were D1, an increase in the price of butter, which is a substitute for margarine, would tend to cause which of the following changes in the market for margarine?  

With time, which one of the following strategies would most likely result in an outward shift in the production possibilities curve of an economy?

Paul and John are two eagle scouts who are both good at setting up tents and building camp fires.  Paul can set up 5 tents or build 10 camp fires in one hour while John can set up 5 tents  or build 5 camp fires in one hour. Which of the following statements is correct?

The economic way of thinking stresses that

Suppose the demand for tacos decreases. What will happen to producer surplus in the market for tacos?

“Henry Ford made millions of dollars producing and marketing automobiles. Many workers and consumers must have suffered in order for Ford to amass such enormous wealth.” The person who made this observation

Which of the following types of unemployment would best characterize a snow ski instructor’s unemployment living in the Bahamas?

In economics, secondary effects refer to the

Which of the following most accurately states the economic significance of trade?

Dwight, a beet farmer, is deciding whether or not to add fertilizer to his crops. If he adds 1 pound of fertilizer per acre, the value of the resulting crops rises from $80 to $100 per acre. According to marginal analysis, Dwight should add fertilizer if it costs less than