The production possibility frontier is used to illustrate the concept of
A. the laissez-faire economy.
B. opportunity costs.
C. aggregate demand.
D. equilibrium.
Answer: B
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Use the following table, which shows the supply and demand schedules for the euro, to answer the next question.Quantity of Euros SuppliedPriceQuantity of Euros Demanded400$1.101003601.002003000.903002860.804002670.70500Under a flexible exchange rate system, what will be the rate of exchange for one euro?
A. $0.80 B. $1.00 C. $0.90 D. $1.10
Which situation is consistent with the law of diminishing marginal utility?
A. The more pizza Joe eats, the less he enjoys an additional slice. B. Joe's marginal utility from eating pizza becomes positive after eating three slices. C. Joe's marginal utility from eating pizza reaches a maximum when total utility is zero. D. The more pizza Joe eats, the more he enjoys an additional slice.
Complete the following analogy: A criminal is to a police artist's sketch as the economy is to:
A. money. B. an economic model. C. a resource. D. scarcity.
When governments grant patents:
A. producers earn profits that are substantially higher than would occur in a competitive market. B. consumers pay a higher price than they would in a competitive market. C. consumers are likely to pay lower prices than they would in a competitive market. D. both producers earn profits that are substantially higher than would occur in a competitive market and consumers pay a higher price than they would in a competitive market are correct.