The above table shows production combinations on a country's production possibilities frontier. Which of the following is an example of a production point that is inefficient?
A) 0 units of good X and 40 units of good Y
B) 6 units of good X and 28 units of good Y
C) 10 units of good X and 16 units of good Y
D) 3 units of good X and 35 units of good Y
D
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All else equal, when oil prices decrease, people are ________ to look for oil substitutes. This will ________ the number of years it will take to deplete the stock of oil
A) discouraged; increase B) discouraged; decrease C) encouraged; increase D) encouraged; decrease
The 45-degree line, measuring Y = C + S, is also called the
a. saving line b. consumption curve c. income line d. investment curve e. GDP curve
To get a complete measure of the total spending on U.S.-produced final goods and services, one must adjust aggregate demand by
a. adding imports and subtracting exports. b. adding imports that are purchased by U.S. consumers. c. adding exports and subtracting imports. d. subtracting exports sold to foreigners.
Figure 6.1 shows the cost structure of a firm in a perfectly competitive market. If the market price is $40 and the firm is currently producing the profit-maximizing output level, its total variable cost is:
A. $12,500. B. $14,300. C. $19,800. D. $27,000.