Some resources are better suited to produce certain goods than other resources. This fact leads to
A) a linear production possibilities curve.
B) inefficiency in the economy.
C) the law of increasing additional cost.
D) increases in technology.
Answer: C
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If the variable on the vertical axis increases by 20 and the variable on the horizontal axis increases by 5, the slope of the line is
A) 0.25. B) 4. C) 15. D) 100.
"According to the Coase theorem, if Gabriel wants the local television station to cease having helicopters fly over his house at night, he will be more likely to be able to reach an agreement with the station if the property right to the airspace is
clearly defined and the transaction costs of negotiating are high." Is this statement true or false? Explain your answer.
What is the relationship between aggregate planned expenditure and real GDP at equilibrium expenditure?
What will be an ideal response?
Individuals economize and respond predictably to
A) negative incentives, but not positive incentives. B) positive incentives, but not negative incentives. C) neither positive or negative incentives. D) both positive and negative incentives.