On a diagram of a production possibilities frontier, opportunity cost is represented by the slope of the production possibilities frontier
Indicate whether the statement is true or false
TRUE
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Gary Franklin is a movie critic. He invented the Franklin Scale with which he rates movies from 1 to 10 (10 being best). When asked about his scale, Mr. Franklin explained "that it is a subjective measure of movie quality
A movie with a ranking of 10 is not necessarily 10 times better than a movie with a ranking of 1, but it is better. A movie with a ranking of 5 is better than a movie with a ranking of 1, but is not as good a movie with a ranking of 10. That's all it really tells you." Based on Mr. Franklin's description, his scale is: A) ordinal but not cardinal. B) cardinal but not ordinal. C) an objective standard to judge movies. D) neither cardinal nor ordinal.
Why is elasticity of demand greater for goods that are a large share of a consumer's budget?
What will be an ideal response?
Which of the following statements is false?
A) Capital consists of produced goods that can be used as inputs for further production. B) The terms resources, inputs, and factors of production are synonyms. C) Labor consists of the physical, but not mental, talents of people who contribute to the production process. D) Entrepreneurship is one of the four categories of resources. E) The resource category land includes natural resources, such as minerals, forests, water, and unimproved land.
Which of the following events would most likely reduce aggregate demand?
A. A reduction in the amount of existing capital stock B. A reduction in business and personal tax rates C. An increase in expected returns on investment D. An increase in real interest rates