The value of Austria's exports minus the value of Austria's imports is called

If the production possibilities frontier is a straight line, then the

A. opportunity cost of producing one good is zero. B. society is capable of producing only one of the goods and not the other. C. producer can produce more of both goods simultaneously. D. law of constant opportunity costs applies.

If not all goods are essential, a consumer will end up optimizing at a corner solution.

Answer the following statement true (T) or false (F)

The Public Service Company of Colorado is a natural monopoly in the transmission and distribution of electric power. As such, it will incur an economic loss if it

A) goes out of business. B) prices its services at average total cost. C) prices its services at marginal cost. D) all of the above

Which of the following is NOT an example of consumer behavior consistent with the standard assumptions of microeconomic theory?

A) A concern for fairness can influence purchasing patterns. B) When demand increases, all else being equal, consumers expect price to rise. C) After a snowstorm, the demand for snow shovels increases. D) Snow shovels and snow plows are substitute goods. E) none of the above