Any output combination along a production possibilities frontier is associated with fully utilized resources
Indicate whether the statement is true or false
TRUE
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Refer to Figure 10.2. Which line represents earnings?
A. a
B. b
C. c
D. h
An inferior good is characterized by:
A. a positive income elasticity of demand. B. a negative income elasticity of demand. C. a negative price elasticity of demand. D. a positive price elasticity of demand.
Which of the following statements explains why it is so difficult for governments to provide the optimal quantity of a public good?
A) Governments have no way of collecting payments for public goods B) Public goods are non-rival but excludable, which makes them costly to produce C) The marginal cost of providing a nonrival good is usually too high for the price conscious consumers D) The marginal benefit of each individual user must be known, and it is often overstated by individuals
There will be no principal-agent problem if a firm's owner (like a business consultant) does all the work of the firm.
a. true b. false