Using a production possibilities curve, a technological advance that increases the amount of output for the same amount of inputs would be illustrated as
a. an inward shift of the curve.
b. a movement from one point to another point along the curve.
c. an outward shift of the curve.
d. a movement from a point on the curve to a point inside the curve.
C
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Suppose the government wants to discourage excessive consumption of alcohol. It therefore imposes a per-unit tax on alcohol that increases as more alcohol is bought by a consumer at a store. What happens to a consumer's budget at a liquor store (with liters of alcohol on the horizontal axis and a composite good on the vertical) --- assuming the consumer takes only one trip to the store.
A. The vertical intercept decreases and the slope becomes shallower as more alcohol is bought. B. The vertical intercept remains constant but the slope becomes shallower as more alcohol is bought. C. The vertical intercept decreases and the slope becomes steeper as more alcohol is bought. D. The vertical intercept remains constant but the slope becomes steeper as more alcohol is bought. E. None of the above.
What is the real GDP in year 1 using base year 1?
A) $418. B) $300. C) $360. D) $338.
The correct expression for cost plus pricing is
A) Price = Cost (1 + profit margin). B) Price = Cost + profit margin. C) Price = Cost (1 + mark-up). D) Price = Cost + (1 + mark-up).
A concentration ratio refers to the
a. ranking of firms by profitability b. percentage of sales accounted for by the leading firms in an industry c. percentage of sales accounted for by the largest firm in an industry d. ability of a firm to control market price e. percentage of profit accounted for by the largest firm in an industry