At which point is society producing the most output possible with the available resources and technology? (See Figure 1.1.) 

A. A.
B. B.
C. C.
D. D.


Answer: B

Economics

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Suppose that when disposable income increases by $2,000, consumption spending increases by $1,500. Given this information, we know that the marginal propensity to consume (MPC) is

A) .25. B) .75. C) $1,000/$750 = 1.33. D) 1/.25 = 4.

Economics

Suppose Winston's annual salary as an accountant is $60,000, and his financial assets generate $4,000 per year in interest. One day, after deciding to be his own boss, he quits his job and uses his financial assets to establish a consulting business, which he runs out of his home. To run the business, he outlays $8,000 in cash to cover all the costs involved with running the business, and earns revenues of $150,000. What costs would be considered when calculating accounting profit?

A. The opportunity cost of his job and interest forgone of $64,000, and the explicit cost of $8,000 B. The implicit cost of the interest forgone of $4,000 and the explicit cost of $8,000 C. The explicit cost of $8,000 D. The implicit cost of his job of $60,000 and the opportunity cost of forgone interest of $4,000

Economics

During the twentieth century, the U.S. farm sector experienced

A) large increases in its ability to produce output. B) relatively little improvement in its ability to produce output. C) a marked decrease in its ability to produce output. D) relatively stable demand for its output. E) increasing relative prices for its output.

Economics

In a graph of the production possibilities curve, the two axes of the graph indicate the:

A. Prices of the two products that a nation can produce B. Maximum quantities of the two resources that a nation possesses C. Price of the products on the vertical axis, and quantities on the horizontal D. Quantities of the two products that a nation can produce

Economics