When a producer is operating efficiently it is producing:
A. at a point on its production possibilities frontier.
B. at a point on or under its production possibilities frontier.
C. only one good.
D. the good in which it has an absolute advantage.
A. at a point on its production possibilities frontier.
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The consumer's work-leisure choice problem focuses on how a consumer's work-leisure decision is affected by the consumer's
A) preferences and productivity. B) productivity and psychology. C) psychology and preferences. D) preferences and constraints.
When the supply curve shifts to the left and there is no change in demand:
A. the market cannot reestablish an equilibrium. B. the equilibrium quantity will rise. C. the equilibrium price will fall. D. the equilibrium price will rise.
Suppose there is a simultaneous increase in demand and increase in supply. Given this information, we know with certainty that
A. the equilibrium price will increase. B. the equilibrium quantity will increase. C. the equilibrium price will increase, and the equilibrium quantity will increase. D. both the equilibrium price and the equilibrium quantity will increase.
What is moral hazard?
What will be an ideal response?