Exhibit 21-1 Production possibilities curves
?
In Exhibit 21-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. In Pada the cost of producing one more unit of corn is equal to:
A. 3 units of wheat.
B. 3 units of corn.
C. 1/3 unit of wheat.
D. 15 units of wheat.
Answer: A
You might also like to view...
The sum of the marginal propensity to consume (MPC) and the marginal propensity to save (MPS) equals: a. 0.5
b. the multiplier. c. the slope of the consumption function. d. 1.0. e. the slope of the saving function.
The largest component of the U.S. GDP is:
A. C B. I C. G D. NX
Which of the following is a macroeconomic question?
A. Should we have a constitutional amendment requiring the government to implement a national consumption tax to replace the current income tax? B. Why did a leading computer manufacturer establish call centers in India? C. Why does a pharmaceutical manufacturer try to lower its production costs? D. Should the government put a tax on alcohol in an attempt to assist in the funding of support groups like Alcoholics Anonymous?
Economic reasoning that is true for one individual but not for society as a whole is referred to as
A) Fallacy of composition. B) Specialization. C) Generalization. D) None of the above.