Any point on the production possibilities curve illustrates:
a. minimum production combinations. b. maximum production combinations.
c. economic growth. d. a nonfeasible production combination.
b
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If the demand for gasoline becomes more elastic over time,
A. the demand curve will shift out. B. the demand curve will become flatter. C. other things being equal, the equilibrium price of gasoline must fall. D. other things being equal, the equilibrium quantity of gasoline must fall.
If scarcity were eliminated,
a. all goods would be free. b. no one would have to make any choices. c. everyone could have all they want at no cost. d. all of the above are true.
If new regulations make it illegal to sell older model electrical appliances, then
a. producers of new models that meet the regulations will see demand for their output rise. b. consumers who might have purchased to older appliances are clearly made better off. c. consumers are helped, but the profits of appliance producers are not affected. d. consumers will certainly gain from the change.
Suppose Ben owns a small company that makes kites. The market for kites is perfectly competitive, and kites sell for $25 each. Ben's total production costs vary depending on the number of kites he makes each day, as shown in the accompanying table. Number of kites Per DayTotal Cost Per Day ($)0100111021263148417252006235 When Ben makes 2 kites per day, what is his average variable cost?
A. $63 B. $50 C. $26 D. $13