If a society is operating at a point inside its production possibilities frontier, then this society's
A) resources are being inefficiently utilized.
B) production possibilities frontier will shift rightward.
C) resources are being used in the most efficient manner.
D) economy will grow too fast.
A
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Total surplus in a market is equal to
a. consumer surplus + producer surplus. b. value to buyers - amount paid by buyers. c. amount received by sellers - costs of sellers. d. producer surplus - consumer surplus.
When studying individuals' economic behavior, economists assume that
A. individuals understand the rationale for all their actions. B. individuals act as if they were rational. C. self-interest is of limited relevance in predicting an individual's actions. D. only educated people act as if they were rational.
Which product is most likely to be the most price elastic?
A. Milk B. Housing C. Clothing D. Automobiles
A change in ________ causes a change in ________ and therefore a change in ________
A) cost; demand; price B) price; demand; supply C) supply; price; demand D) demand; price; cost