In using a tanks and trucks production possibilities curve with increasing opportunity cost, producing more and more tanks
A. Is not possible due to scarcity.
B. Requires us to give up larger and larger amounts of trucks per tank produced.
C. Lowers the cost of each individual tank.
D. Can be done at a constant opportunity cost.
Answer: B
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In the above figure, if the price is $4 per unit, how many units will a profit maximizing perfectly competitive firm produce?
A) 0 B) 5 C) 20 D) 30
The trade-off between physical capital and current consumption:
A. is harder for poorer countries than rich ones. B. is easier for poorer countries than rich ones. C. involves giving up less current consumption for poor countries, since they have little. D. involves giving up more current consumption for rich countries, since they have so much.
Governmental assistance to the unemployed
A. is taxed as regular income by the federal government. B. is opposed by Keynesian economists. C. was abolished under the 1986 Tax Reform Act. D. may increase unemployment because it enables the jobless to take more time to look for employment.
Suppose that the percentage change in demand is 10%, the price elasticity of demand is 1, and the percentage change in the equilibrium price is 3.33%. What is the price elasticity of supply?
A. 0 B. 1 C. 2 D. 3