As you move down the production possibility frontier, the absolute value of the marginal rate of transformation
A. increases.
B. initially decreases, then increases.
C. decreases.
D. initially increases, then decreases.
Answer: A
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What is price discrimination and how is it used to increase a monopoly's profit?
What will be an ideal response?
A hyperinflation is
A) a period of extreme inflation generally greater than 50% per month. B) a period of anxiety caused by rising prices. C) an increase in output caused by higher prices. D) impossible today because of tighter regulations.
According to the Incentive Principle:
A. people tend to do more of something when its benefits are greater. B. people will always take the highest-paying job they are offered. C. benefits are more important than costs in making a decision. D. it is irrational to perform volunteer services.
Consider a factory that emits chemicals into a river, thus polluting the water supply of a downstream community. The Coase Theorem states that the socially optimal, or efficient, solution can be achieved by assigning property rights to _____________________.
a. the company. b. the community. c. the company and the community, jointly. d. the company or the community. e. a government regulator.