A technological advance that increases the productivity of all inputs is best illustrated as:
a. a movement along the production possibilities curve.
b. a flattening of the production possibilities curve
c. an inward shift of the production possibilities curve.
d. an outward shift of the production possibilities curve.
d
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Two social institutions that are essential for trade to be organized are ________
A) property rights and laws B) markets and banks C) businesses and banks D) markets and property rights
Which of the following is true of productive efficiency?
a. It is a situation in which the marginal benefit from the consumption of a good declines as increments of resources are added to a certain purpose. b. It is a situation in which it is impossible to produce more of one good without decreasing the quantity produced of another good. c. It is a situation in which the mix of goods being produced represents the allocation that society most desires. d. It is a situation in which costs that were incurred in the past cannot be recovered and thus do not affect current decisions.
If a person is risk averse, then she has
a. diminishing marginal utility of wealth, implying that her utility function gets flatter as wealth increases. b. diminishing marginal utility of wealth, implying that her utility function gets steeper as wealth increases. c. increasing marginal utility of wealth, implying that her utility function gets flatter as wealth increases. d. increasing marginal utility of wealth, implying that her utility function gets steeper as wealth increases.
Economists have suggested that the relatively higher unemployment in Europe has been caused by which of the following?
A) relatively high unemployment benefits B) relatively high level of worker protection C) inadequate macroeconomic policies D) increased labor costs E) all of the above