The slope of the production possibility frontier shows
a. the marginal rate of substitution between the two goods.
b. the relative marginal costs of the two goods.
c. the efficient combination of outputs possible using fixed amounts of input.
d. the relative marginal productivities of the two goods.
b
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A monopoly or group of firms acting together as a monopoly
a. cannot perform the economic task of resource allocation b. allocates resources in the most efficient way possible c. misallocates resources by producing more output than a competitive industry would d. misallocates resources by producing where the marginal benefit of the final unit produced exceeds its marginal cost e. misallocates resources by producing where the marginal benefit of the final unit produced is less than its marginal cost
You have just bought a used car and drive away satisfied that you’ve made a good deal on the purchase. What would an economist say about your “gain” on the deal?
A. Your gain has clearly meant that the seller lost on the deal. B. The seller has clearly gained, and you have actually lost on the deal. C. Both you and the seller have gained something. D. If your gain is too large, then the deal should be renegotiated. E. If the seller’s loss is too large, then the deal should be renegotiated.
Crowding out can best be defined as
A. private investment increases growth rates and decreases deficits. B. restrictive monetary policy raises interest rates and decreases investment. C. government deficits increase interest rates and decrease investment. D. consumption spending increases interest rates and decreases investment.
Answer the following question based on the graph showing the median voter. If candidate A took a position at VM, she would have the best chance of winning if she convinced voters that candidate B is taking a position ______.
a. as far as possible from VM
b. just to the left of V2
c. just to the right of V1
d. as near as possible to VM