Refer to Table 2-2. Assume Nadia's Neckware only produces ascots and bowties. A combination of 16 ascots and 6 bowties would appear
A) along Nadia's production possibilities frontier.
B) inside Nadia's production possibilities frontier.
C) outside Nadia's production possibilities frontier.
D) at the horizontal intercept of Nadia's production possibilities frontier.
B
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Why did so many banks sit on their reserves during the financial crisis of 2008–2009?
a. They expected the United States to declare war soon. b. They were waiting for the stock market to take a plunge. c. They feared that borrowers would not pay back their loans. d. They opposed the policies of the presidential administration.
If price is less than average cost in a monopolistically competitive market:
A. there is an incentive for firms to exit the market. B. there is profit incentive for firms to enter the market. C. the market must be in long-run equilibrium. D. there is no incentive for the number of firms in the market to change.
In order to maximize utility, a consumer should allocate money income so that
A) the marginal utility of the last unit of each product consumed is greater than the total utility of each product consumed. B) the total utility derived from each product consumed is the same. C) the marginal utility obtained from the last dollar spent on each product is the same. D) the elasticity of demand on all products purchased is the same.
The slope of a production possibilities frontier measures:
A. inefficient production of a good. B. the trade-off in the consumption of one good versus the other good C. how much of the resources must be used in order to produce one the goods. D. the opportunity cost of producing one good in terms of the other good.