An indifference curve shows the various consumption bundles that result in the same level of well-being for an individual.
Answer the following statement true (T) or false (F)
True
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All possible efficient allocations of 2 goods between 2 people are located on
A) the indifference curve. B) the contract curve. C) the production possibilities frontier. D) the budget line.
Marginal social cost equals marginal ________ cost plus marginal ________ cost, and reflects the true marginal cost to society of an additional unit of production
a. fixed; variable b. implicit; explicit c. labor; capital d. private; external
In a free market system, competition generates economic efficiency only when
A. firms are motivated by a sense of the greater good, not their desire for profit. B. economic decisions are taken out the hands of individuals and placed in the hands of government officials. C. consumers are motivated by a sense of the greater good, not their own self-interest. D. individuals take into account the full opportunity cost of their actions.
Suppose that last week 100,000 people lost their jobs or quit. We can say that
A. the number of unemployed increased by less than 100,000 people because we should not count those who quit their jobs. B. the number of unemployed increased by 100,000 people. C. the 100,000 people represent a stock known as the new unemployed. D. the 100,000 people represent a flow known as job departures.