A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule:
Refer to the above table. In moving stepwise from possibility A to B to C … to F, the opportunity cost of a unit of steel in terms of wheat:
A. Increases
B. Decreases
C. Remains constant
D. Increases at first then decreases
Answer: A
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Why doesn't the process of electing officials prevent rent-seeking and corruption?
A. The cost of gathering such information is often too costly. B. Those who win special favors through this behavior simply pay others off to keep them from whistleblowing. C. It actually does prevent this behavior in the real world. D. People are generally disinterested in preventing both of these in government.
Fred's demand schedule for movie DVDs is as follows: At $30, he would buy 1; at $25, he would buy two; at $15, he would buy 3; and at $10, he would buy 4 . If the price of movie DVDs equals $25, the consumer surplus Fred receives from purchasing movie DVDs would be: a. zero. b. $5
c. $25. d. $55.
A monopolist is currently maximizing profits. In addition, if P > ATC > MC, then the monopolist
A. is covering total fixed costs but not total variable costs. B. is covering total variable costs but not total fixed costs. C. just breaks even. D. earns positive economic profits.
Before the early 1970s, we ran a positive trade balance
A. in both merchandise and services. B. in neither merchandise nor services. C. in merchandise, but not in services. D. in services, but not in merchandise.