If we consider the reality that each worker has different skills, then the production possibilities frontier
A. would display a constant opportunity cost of a good as more of that good is produced.
B. would display a decreasing opportunity cost of a good as more of that good is produced.
C. would display an increasing opportunity cost of a good as more of that good is produced.
D. cannot be drawn, as too many variables would need to be taken into consideration.
C. would display an increasing opportunity cost of a good as more of that good is produced.
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
Use the following graph to answer the question below.
The price where marginal benefit equals marginal cost is
A. $1.60. B. $1.00. C. $2.90. D. $0.50.
According to classical economists, a decrease in the rate of interest will
A) increase unemployment. B) increase consumer saving. C) increase business investment. D) increase business failures.
The notion that regulated industry members themselves, sooner or later, are able to control regulatory bodies is referred to as
A) consumerism. B) cartelization. C) the capture theory. D) the control theory.