Consider a society facing the production possibilities curves in the figure shown. What is the most likely cause of a society moving from PPF3 to PPF1?
A. A tornado
B. A desire to read less books
C. Better sewing technology
D. More workers
Answer: A
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A group price discriminator sells its product in Florida for three times the price it sets in New York
Assuming the firm faces the same constant marginal cost in each market and the price elasticity of demand in New York is -2.0, the demand in Florida A) has an elasticity of -6.0. B) is more price elastic than the demand in New York. C) has an elasticity of -1.2. D) has an elasticity of -0.67.
If a person could increase total utility by purchasing more candy and fewer apples, then the
a. total utility from candy must exceed the total utility from apples b. marginal utility of candy must exceed the marginal utility of apples c. marginal utility per dollar spent on candy must exceed the marginal utility per dollar spent on apples d. total utility per dollar spent on candy must exceed the total utility per dollar spent on apples e. marginal utility per dollar spent on candy must be less than the marginal utility per dollar spent on apples
Whenever a cartel in a duopoly breaks down, a. both firms obtain higher profits
b. total output in the market will rise. c. price in the market will rise. d. the socially optimal output will be produced.
An economy where private individuals guided by the invisible hand make decisions is known as a:
A. socialist economy. B. centrally planned economy. C. barter economy. D. market economy.