When the opportunity cost of producing carrots increases as more carrots are produced, then
a. no more carrots will be produced
b. resources are equally suited to the production of carrots and to other goods
c. the production possibilities curve shifts inward
d. the production possibilities curve shifts outward
e. the law of increasing costs is in effect
E
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Adam Smith’s book, one of the first systematic treatments of economics, was entitled
A. The Plan of the Ages. B. The General Theory of Money, Taxes, and Income. C. The Wealth of Nations. D. Principles of Economics. E. Concepts in Moral Philosophy.
Paying an above-equilibrium wage rate might reduce unit labor costs by:
A. permitting the firm to attract lower-quality labor. B. increasing the opportunity cost to workers of being fired for shirking. C. increasing voluntary worker turnover. D. increasing the supply of labor.
Industry price and the price taken by the perfect competitor are ___________.
Fill in the blank(s) with the appropriate word(s).
The effects of a recession on auto companies are that ________ cars are demanded and prices generally __________.
A. fewer; fall B. more; fall C. fewer; rise D. more; rise