An economy consists of two goods: beef and lamb. Of all the points on this economy’s production possibilities frontier, which one is best in terms of efficiency?
What will be an ideal response?
There is no best point in terms of efficiency. All points on the PPF are efficient.
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Dr. Khan starts his own dental practice after quitting his $150,000 job at The Mall Dental Clinic. His revenues for the first year are $500,000
He paid $90,000 in rent for the dental office, $60,000 for his office manager's salary, $24,000 for the dental hygienist, $150,000 for insurance, and $6,000 for other miscellaneous costs. The normal profit from running his business is $20,000. Which of the following statements is true? A) His accounting profit is $350,000. B) His economic profit is $150,000. C) His economic profit is zero. D) His accounting profit is zero. E) None of the above answers is correct.
Points inside a production possibilities curve are ________ and ________
A) efficient; unattainable B) inefficient; unattainable C) efficient; attainable D) inefficient; attainable
An increase in input prices will cause
A. AD to decrease (move to the left). B. AD to increase (move to the right). C. AS to decrease (move up and to the left). D. AS to increase (move down and to the right).
Refer to the information provided in Table 21.8 below to answer the question(s) that follow. Table 21.8
Refer to Table 21.8. The value for GNP in billions of dollars is
A. 990. B. 1,050. C. 1,080. D. 1,200.