In a production possibilities frontier graph, the cost of producing more units of a good is measured by the
A) dollar value of the additional output.
B) area in the arc between the PPF and a straight line drawn between the starting point and the ending point.
C) dollar value of the resources used to produce the good.
D) amount of the other good or service that must be forgone.
E) None of the above answers is correct.
D
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Which of the following statements is true?
A) Economic growth always reduces poverty. B) Economic growth is ineffective in reducing both poverty and inequality. C) Economic growth always reduces inequality. D) Economic growth can reduce poverty only if it is not associated with a significant rise in inequality.
The negative correlation between the vacancy rate and the unemployment rate is called
A) The Laffer curve. B) The Phillips curve. C) The Fisher relation. D) The Beveridge curve.
If cyclical unemployment is negative, then
A) the actual unemployment rate is below the natural rate of unemployment. B) the natural rate of unemployment is getting smaller. C) there have been some errors in classifying the type of unemployment experienced by some people. D) structural unemployment must be increasing.
Stella's marginal utility of the last unit of X consumed is 18 and her marginal utility of the last unit of Y consumed is 12 . What prices for X and Y, respectively, are consistent with Stella being in consumer equilibrium?
a. $4 and $6 b. $12 and $18. c. $15 and $15. d. $12 and $8.