The questions of what goods to produce, how to produce them, and for whom to produce them are of concern only in advanced industrial economies.
a. true
b. false
Ans: b. false
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Based on the information above, video games have
a. A unit elastic demand curve b. A inelastic demand curve c. A elastic demand curve d. A perfectly elastic demand curve
Efficiency wages create a labor
a. surplus and so increase unemployment. b. surplus and so decrease unemployment. c. shortage and so increase unemployment. d. shortage and so decrease unemployment.
Diminishing returns to capital is a consequence of firms' incentives to use each piece of capital as productively as possible and illustrates the:
A. principle of increasing opportunity costs. B. scarcity principle. C. cost-benefit principle. D. principle of comparative advantage.
The marginal rate of substitution (MRS) determines the rate at which a consumer is willing to substitute between two goods in order to achieve:
A. the same level of satisfaction. B. a lower level of satisfaction. C. a higher level of satisfaction. D. None of the statements is correct.