Refer to Scenario 2.2. What is the effect of the BBP on the market for dental care?
A) Only the supply curve shifts.
B) Only the demand curve shifts.
C) Both the demand and supply curves shift.
D) Neither the demand nor supply curve shifts.
C
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A production possibilities frontier will be bowed out if
a. there is scarcity b. resources are used efficiently c. production of one good involves an opportunity cost d. resources are not perfectly adaptable to making each good e. technology is improving
Which of the following annual real GDP growth rates would be needed just to maintain output per capita in the United States?
a. 10.0 percent b. 2.5 percent c. 1.0 percent d. 7.0 percent e. 3.5 percent
Inefficient use of resources is shown on the production possibilities curve
A. by an inward shifting of the curve. B. by a point inside the curve. C. by a point outside the curve. D. by a point near the top of the curve.
An externality occurs whenever
A) private costs are the same as social costs. B) private costs are the same as internal costs. C) private costs diverge from social costs. D) private costs plus internal costs equal social costs.