The bowed shape of the traditional production possibilities curve reflects the
A) negative side effects of economic growth.
B) fact that not all resources are equally well-suited to producing all goods.
C) costs of unemployment.
D) problems of inequality.
Answer: B
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The assertion "capital is productive, but the ownership of capital is not," assumes the efficient use of resources
A) is different from technological efficiency and more difficult to achieve. B) is no more likely under one ownership arrangement than another. C) may be significantly affected by transferring ownership from private to public hands. D) sometimes is affected by transferring ownership from public to private hands.
The decline of the full-service wholesale houses CANNOT be traced to
a. competition from the marketing departments of large manufacturers. b. many industries adopting the "continuous process" manufacturing. c. the rise of brand identity. d. All of the above are correct. e. Only a and c are correct.
Which of the following is not a characteristic of the monopolistic competition market structure?
a. Many sellers, each small in size relative to the overall market. b. Few sellers. c. Differentiated product. d. Easy, low-cost entry and exit.
Inferior goods may also be referred to as
A) countercyclical goods. B) cyclical goods C) substitutes. D) anti-luxury goods.