Which of the following is a correct description of the supply curve?
i. The supply curve is also the marginal cost curve.
ii. The supply curve shows the dollars' worth of other goods that we must sacrifice to produce another unit of a good.
iii. The supply curve shows the additional cost of producing another unit of a good.
A) i only
B) i and ii
C) ii and iii
D) i, ii, and iii
E) ii only
D
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If the farm adopted a new technology, which allows it to use fewer resources to fatten chickens, explain how the farm's production possibilities will change. Explain how the opportunity cost of producing a bushel of soybean will be affected
What will be an ideal response?
Over the past few decades, nominal interest rates have been higher than real rates of interest. This means that
a. lenders must have expected inflation. b. borrowers must have expected deflation. c. lenders must have expected prices to fall. d. borrowers must have expected prices to fall.
Which of the following statements is correct?
a. Public ownership is preferred to regulation in order to minimize the deadweight losses associated with natural monopolies. b. Antitrust laws are always the best way to limit monopoly power. c. It is possible that the best approach to monopolies is for the government to do nothing. d. Marginal-cost pricing requires a natural monopoly to earn zero economic profits.
What are transfer payments, and how do they affect the calculation of GDP?