With time, which one of the following strategies will most likely result in an outward shift in an economy's production possibilities curve?
a. passage of legislation reducing the workweek to 30 hours
b. institution of a tax policy encouraging research that advances technology
c. institution of a tax policy encouraging consumption at the expense of investment
d. passage of a law requiring the minimum wage to increase every year
B
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In November 2009, Marketopia Motors produced an automobile that was delivered to a local dealership in December 2009. The auto was then sold to Sharon Smith for personal use in February of 2010. Following national income accounting practices, this auto would be counted as part of ________.
A. consumption in 2009 and consumption in 2010 B. negative investment in 2009 and consumption in 2010 C. consumption in 2009 and investment in 2010 D. investment in 2009 and negative investment in 2010
A natural monopoly regulated with an average cost pricing rule is ________
A) efficient and incurs an economic loss B) inefficient and makes zero economic profit C) inefficient and makes an economic profit D) efficient and makes zero economic profit
Isoquant lines represent ________ whereas isocost lines represent ________
A) technical efficiency; economic efficiency B) economic efficiency; technical efficiency C) economic efficiency; marginal costs D) input tradeoffs; economic tradeoffs
Suppose that the firms in the perfectly competitive oat industry currently are receiving a price of $2 per bushel for their product. The minimum possible average total cost of producing oats in the long run is $1 per bushel. It follows that:
A. the price of oats will remain at $2 per bushel in the long run. B. the oat industry is in equilibrium. C. firms in the oat industry will earn economic profits in both the long run and the short run. D. new firms will enter the oat industry.