The fact that we are operating at a point inside a bowed out production possibilities frontier indicates there is
A. scarcity.
B. increasing opportunity cost.
C. unemployment.
D. constant opportunity cost.
Answer: C
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What is the dominant strategy for Bob? Donna? Which strategy should each player choose to maximize the potential gain? What do you think the outcome of this game will be? Carefully explain your answers
What will be an ideal response?
The believer in policy ________ must be pessimistic about the ability of the private economy to self-stabilize and ________ about the accuracy of economic forecasting
A) activism, pessimistic B) activism, optimistic C) rules, pessimistic D) rules, optimistic
Surgical specialists earn more than general/family practice physicians do.Which of the following statements is not true regarding this income differential?
a. Surgeons will always earn more than general practitioners because they are smarter than general practitioners. b. Surgeons earn more than general practitioners because cutting into people is risky. c. Surgeons earn more because their practice costs, including medical malpractice insurance, are higher. d. Surgeons earn more to compensate them for the extra years spent as residents. e. Physicians' incomes are determined largely by supply and demand conditions with respect to each specialty.
Suppose that each worker must use only one shovel to dig a trench, and shovels are useless by themselves. In the long run, the firm will experience
A) increasing returns to scale. B) constant returns to scale. C) decreasing returns to scale. D) The returns to scale cannot be determined from the information provided.