A typical economy produces thousands of different goods. Is it accurate to say that society faces a production possibilities frontier?
a. No, because two dimensions cannot capture the complexity of a full economy.
b. No, although a graph with several thousand dimensions would be appropriate.
c. Yes, although society does not face opportunity cost and the model does not apply.
d. Yes, because scarcity always imposes opportunity costs.
e. Uncertain-economic theory has no answer to this question.
d
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In 2001 and 2002, McDonald's tried to improve the quality of its service by hiring mystery shoppers to evaluate service, cleanliness, and food quality
Indicate whether the statement is true or false
Accounting profit equals
a. explicit costs minus implicit costs b. economic profit minus implicit costs c. economic profit minus explicit costs d. economic profit minus explicit costs and implicit costs e. economic profit plus implicit costs
If firms find that consumers are purchasing more than expected, then?
What will be an ideal response?
Foreign aid:
A. provided by developed countries to developing countries represents about 10 percent of the GDP of developed countries. B. is an important source of funding for investment in most developing countries. C. does not contribute much to domestic investment in most developing countries. D. is largely wasted in most developing countries because it comes with no strings attached.