The following economy produces two products.ProductsProduction Possibilities?ABCDEFTanks012345Autos10009508506503500Given the production possibilities schedule above, a combination of three tanks and 350 autos:
A. cannot be produced by society, given its current level of resources and production technology.
B. illustrates the trade-off between tanks and autos.
C. is not attainable because this combination is not listed in the schedule.
D. is attainable but involves the unemployment or inefficient use of some of society's resources.
Answer: D
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When oligopolies operate like firms in perfect competition, the firms produce at the point where the
A) price is less than the marginal cost. B) marginal cost equals the price. C) price exceeds the marginal cost by the greatest amount. D) price exceeds the average total cost by the greatest amount. E) marginal cost equals the average total cost.
Limit pricing in a contestable market sets the price at the highest level that ________
A) maximizes the profit of an entrant B) maximizes the profit of the existing firm C) maximizes the profit of both the existing firm and the entering firm D) inflicts a loss on an entrant
Mobutu Sese Seko was President of ________
A) Canada B) Zaire C) Cote d'Ivoire D) Tajikistan
In an open economy, an increase in saving might not cause an increase in domestic investment. Why not? Does that mean that an increase in saving is undesirable?
What will be an ideal response?