Graphically, economic growth is represented as
A. a movement along the production possibilities curve.
B. a movement from a point inside the production possibilities curve to a point on the curve itself.
C. an outward shift of the production possibilities curve.
D. an inward shift of the production possibilities curve.
Answer: C
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What will be an ideal response?
Natural monopolies:
A. are the only monopolies that are efficient. B. can capture the lowest production costs possible for the industry. C. are always protected by government policy. D. generally earn zero accounting profits due to regulations.
Which of the following would be an expected result of substantially higher wages in the U.S. automobile industry?
a. an increase in the real wages of workers outside the industry b. an increase in the price of automobiles produced in the United States c. a reduction in the demand for foreign-produced automobiles d. an increase in the profit rate of U.S. automobile producers
Suppose the demand for hamburgers increases. In the short run, firms that produce hamburgers will experience a rise in prices, which will induce them to:
A. decrease production and decrease the number of workers. B. increase production and increase the number of workers. C. decrease production and increase the number of workers. D. increase production and decrease the number of workers.