The slope of the production possibilities frontier at a given point indicates ________.
a. the preferences of a country.
b. a country's total gains from trade.
c. a country's opportunity cost of production.
d. a country's trade balance.
Ans: c. a country's opportunity cost of production.
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Natural rate of unemployment is considered to be the sum of:
a. seasonal and structural rates of unemployment. b. frictional and structural rates of unemployment. c. seasonal and cyclical rates of unemployment. d. frictional and cyclical rates of unemployment.
In an analysis of an excise tax on soda, which of the following is an exogenous variable?
a. The price received by sellers. b. The price paid by buyers. c. The quantity exchanged in the market. d. The tax.
Economic profit is most closely associated with:
A. the process of saving and investing. B. monopoly, innovation, and uninsurable risks. C. long-run competitive equilibrium. D. a static economy.
Figure 8.4 depicts demand and costs for a monopolistically competitive firm. At the profit-maximizing output level:
A. the firm is making a positive economic profit. B. the firm is earning a zero economic profit. C. the firm is earning a negative economic profit. D. There is not sufficient information.