Author Question: The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A decrease ... (Read 36 times)

lilldybug07 · **on:** Jun 29, 2018

The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A decrease in the price of sugar used to make soft drinks is shown as a movement from point a to a point such as

A) none of the points that are illustrated.
B) point b.
C) point c.
D) point d.

Question 2

China's population is over 1.5 billion, while the population of the United States is about 300 million. This fact means that China has much more human capital than the U.S. does. True or false? Explain your answer.

Indicate whether the statement is true or false

miss_1456@hotmail.com · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

B

Answer to Question 2

False. Population can measure the quantity of a nation's labor resource, but the population numbers don't tell us anything about skills that this labor force obtained from education, on-the-job training, and work experience, which are called human capital. Thus, the population numbers in the statement only tell us that China is likely to have more labor than the United States, but it does not necessarily mean that it also has more human capital.