Increasing opportunity cost implies that
A) producing additional units of one good results in proportionately smaller reductions in the output of the other good.
B) producing additional units of one good results in increasing amounts of lost output of the other good.
C) the production possibilities frontier will be a straight line.
D) the society will be producing inside its production possibilities frontier.
B
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Mia wants to buy a book. The economic perspective suggests that Mia will buy the book if the
A. marginal cost of the book is greater than or equal to its marginal benefit. B. marginal cost of the book is affordable for her. C. marginal benefit of the book is greater than zero. D. marginal benefit of the book is greater than or equal to its marginal cost.
Farmers can raise either goats or ostriches on their land. Which of the following would cause the supply of goats to decrease?
A) an increase in the price of ostrich feed B) an increase in the price of ostriches C) a decrease in the price of goats D) an increase in the demand for goats
All modern economies depend on
A. the exploitation of workers. B. government ownership of the means of production. C. free-enterprise. D. specialization.
A critical assumption in the model of demand and supply is the independence of demand and supply curves. If the two are not independent, a shift in the supply curve can lead to a shift in the demand curve referred to as
a. supply-side economics. b. supplier-induced demand. c. supply shocks. d. ceteris paribus. e. the fallacy of supply.