Which of the following is true of a production possibilities curve?
What will be an ideal response?
It reveals the maximum amount of any two goods that can be produced from a fixed quantity of resources.
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Which of the following is TRUE about unions?
A) Unions in some settings are associated with increased productivity. B) Unions in some settings have been effective in promoting general social legislation. C) Both A and B are correct. D) Neither A nor B is correct.
Insurance works best in situations where there is
a. a high probability of a small loss. b. a low probability of a small loss. c. a high probability of a large loss. d. a low probability of a large loss. e. the level of probability and the size of the loss are irrelevant.
The inverse supply curve of coffee beans equals P = -5 - 2rain + Qs, where rain equals the number of inches of rain per year. How much does quantity supplied change when rain increases from 30 inches to 40 inches per year?
A) Qs decreases by 40. B) Qs increases by 40. C) Qs increases by 30. D) Qs decreases by 30.
In an economy with no income taxes or imports, if the MPC is .75, the multiplier is
A) 0.50. B) 4.00. C) 0.33. D) 3.00. E) 0.25.