The production possibilities curve illustrates the basic principle that:
A. the production of more of any one good will in time require smaller and smaller sacrifices of
other goods.
B. an economy will automatically obtain full employment of its resources.
C. if all the resources of an economy are in use, more of one good can be produced only if
less of another good is produced.
D. an economy's capacity to produce increases in proportion to its population size.
Answer: C
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_____ helps to estimate the rate of growth of GDP of a nation
a. The rule of 70 b. A compound growth rate c. An aggregate production function d. The rule of law
GoFresh and Heptol are leading shower gel producers in a market. The two firms are large enough to cover almost the entire market demand. A new firm that is comparatively smaller wants to enter the market. In the given scenario, which of the following statements is most likely to be true? a. The new firm cannot enter the market because it does not fulfill the legal requirements
b. The new firm cannot enter the market because its product is not liked by the consumers. c. The new firm cannot enter the market because it is technologically difficult for it to produce shower gel. d. The new firm cannot enter the market because it is too small to spend a considerable amount of money on advertising.
Bitcoin:
a. Is a physical currency that can be converted freely into a wide variety of virtual and (other) real currencies? b. Virtual currency that keeps track of Bitcoin owners and users by means of a clearing house called Mt. Gox. c. Is a virtual currency that publishes online the details on all its customers' addresses but manages to keep customers' identities secret by not publishing any facts related to their transactions? d. Is a virtual, peer-to-peer currency.
Markets with hit-and-run entry and exit experience
A) barriers to entry. B) firms entering whenever they can make a profit and exiting when they cannot make a profit. C) steady long-run economic profit. D) a very steady number of firms.