According to the Added Perspective in the text, a new cost-effective vaccine for chickens can be expected to have what effect on the Malaysian production possibilities curve and why?
a. increase, because it is a technological innovation
b. decrease, because it will cause a loss of jobs for farmers
c. increase, because capital will decrease as less is needed
d. decrease, because fewer chickens will survive with the vaccine
e. decrease, because the vaccine is very costly
A
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Refer to the scenario above. If the curator values the painting at $45,000, which of the following problems is likely to arise?
A) Adverse selection B) Free-rider problem C) The paradox of thrift D) The tragedy of the commons
Specializing in the production of a good or service in which one has a comparative advantage enables a country to do all of the following except
A) engage in mutually beneficial trade with other nations. B) produce a combination of goods that lies outside its own production possibilities frontier. C) consume a combination of goods that lies outside its own production possibilities frontier. D) increase the variety of products that it can consume with no increase in resources.
The opportunity cost of going to college consists of more than just the tuition that will be paid
a. True b. False
Profit maximization occurs at the quantity where marginal cost equals marginal revenue
a. True b. False