Refer to the graph below.
If the production possibility curve shifts along the Good Y axis, which point will remain as a point of efficiency?
A. A
B. B
C. C
D. D
Answer: D
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Fact: Churches and charities work hard to acquire more money to advance their projects. They happily accept money because
A) they are clearly selfish and materialistic. B) the transaction costs of donating money are generally lower than the costs of donating other goods and services. C) they tend to see money as the root of all evil, and by collecting it they can more effectively destroy it and change the system for the better. D) none of the above.
The growth of total railroad mileage
(a) was far greater after the Civil War than before. (b) was maximized in miles built per decade before 1860. (c) was a free-market phenomenon, not subject to government subsidies. (d) was not subject to business cycle fluctuations.
Which of the following is a characteristic of the monopolistic competition market structure?
a. Many firms and a homogeneous product. b. Few firms and differentiated products. c. Few firms and similar products. d. Few firms and a homogeneous product. e. Many firms and differentiated products.
Which of the following best defines consumer surplus?
a. the amount that individuals actually paid, minus the amount that they would have been willing to pay b. the amount that a seller is paid for a good minus the seller’s actual cost c. the amount that individuals would have been willing to pay, minus the amount that they actually paid d. when it is impossible to improve the situation of one party without imposing a cost on another