The "rules of the game," the set of conditions that shape individual incentives and constraints, are determined by
a. the production possibilities frontier
b. scarcity
c. technology
d. the amount of consumer goods in the economy
e. laws about resource ownership and the role of government
E
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In perfect competition, all the following situations arise except ________
A. firms produce an identical good or service B. each firm chooses the price at which to sell the good it produces C. firms can sell any quantity they choose to produce at the market price D. buyers know each seller's price
The direct cause of the hyperinflation that plagued Zimbabwe in the 2000s is ________
A) printing of too much money by the central bank B) government expenditures greatly above revenues C) outlawing of price increases on many commodities D) allowing the use of foreign currencies E) the issuance of a $100 billion bank note
A firm with two plants, A and B, has the following estimated demand and marginal cost functions:Qd = 120 - 10PMCA = 4 + (1 / 5)QAMCB = 6 + (1 / 10)QBWhat is the firm's total marginal cost function?
A. MC = 2 + (1/10)Q B. MC = (80/15) + (1/15)Q C. MC = 24 + (1/50)Q D. MC = 10 + (3/15)Q
The absolute value of the slope of the indifference curve given the law of diminishing marginal rate of substitution:
A. is different. B. declines as one moves to the right. C. is constant. D. increases as one moves to the right.