What does it mean when a "free lunch" is available? Relate your answer to the production possibilities frontier
What will be an ideal response?
A free lunch means that there is no tradeoff, that is, the production of one good or service can be increased without decreasing the production of another good or service and thereby giving up some of the other good. A free lunch occurs when the economy is producing at a point within the production possibilities frontier because at these points some resource is unemployed. By utilizing the unemployed resource, more goods or services can be produced without giving up any other goods or services.
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When a dinner in Bulgaria costs 150 Bulgarian levas, it will cost a U.S. resident ________ dollars, if the exchange rate is 1.5 Bulgarian levas to the dollar
A) $10 B) $100 C) $120 D) $150
There has been a decrease in the demand for socks. This change can be shown graphically as a:
A. shift in the demand curve to the right. B. shift in the demand curve to the left. C. movement along the demand curve to the right. D. movement along the demand curve to the left.
A duopoly is a form of oligopoly with two firms.
Answer the following statement true (T) or false (F)
Which of the following is the best example of an oligopoly?
A. area restaurants B. the automobile industry C. agricultural markets free of government support D. local utilities