Boundary solutions arise when:
A. a good provides a consumer with little value per dollar relative to other alternatives.
B. a consumer has a very low level of income.
C. indifference curves are convex.
D. indifference curves exhibit increasing MRS.
A. a good provides a consumer with little value per dollar relative to other alternatives.
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A monopoly is the only seller of a product
A. without a wellminusdefined demand curve. B. with many substitutes. C. with a perfectly inelastic demand. D. without a close substitute.
The figure above shows the production possibilities frontier for a country. In order for it to move from producing at point A to producing at point B, the country would need to
A) decrease SUV production by 1 million. B) decrease SUV production by 3 million. C) decrease SUV production by 4 million. D) decrease compact car production by 3 million. E) acquire more resources and/or more advanced technology.
A temporary negative supply shock ________ real interest rates and ________ output in the short run, thereby its effect on stock prices is ________
A) raises; lowers; negative B) raises; raises; ambiguous C) lowers; raises; negative D) lowers; raises; positive
If producers cannot afford the fees for pollution rights,
a. they will pollute b. they will buy pollution rights c. they will sell pollution rights d. they will have to find a cheaper way to deal with their pollution e. they will not be able to use their pollution rights