Which of the following illustrates that at any point in time, a fully employed economy must sacrifice some amount of one good to obtain more of another good?
a. A budget line
b. Macroeconomics
c. Marginal analysis
d. A production possibilities table
e. A budget constraint
d. A production possibilities table
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What approach to fairness argues in favor of government policies that redistribute income so that there is more equality of income?
What will be an ideal response?
The obligations and prohibitions present in a contract between a franchiser and the franchisee are called vertical restraints
Indicate whether the statement is true or false
The primary benefit of voluntary trade is that
a. it allows developers to put land to better use through eminent domain. b. the prices of goods and services rise. c. people on both sides of the trade are made better off. d. it increases tax revenue.
Exhibit 2-1 Production possibilities curve data ConsumptionGoods CapitalGoods 10 0 9 1 7 2 4 3 0 4 In Exhibit 2-1, why is the opportunity cost of producing the fourth unit of capital 4 units of consumption goods but the opportunity cost of producing 4 units of capital is 10 units of consumption goods?
A. It isn't. The opportunity cost of the fourth unit and the opportunity cost of four units is the same. B. Because consumption goods are more valuable than capital goods. C. Because the opportunity cost of capital goods is constant while the opportunity cost of consumption goods is decreasing as this economy moves from more consumption goods to more capital goods. D. Because the opportunity cost of the fourth unit of capital is the consumption goods that must be given up for this economy to move from three units of capital to four units of capital, but the opportunity cots of four units of capital is the amount of consumption goods that must be given up to go from zero units of capital to four units of capital.