Refer to the above figure. Which of the following statements is TRUE?
A. Panel A represents an economy that has a lower level of technology than Panel B.
B. In Panel A, equal amounts of Y must be given up to obtain equal increments of X while in Panel B increasingly greater amounts of Y must be given up to obtain equal increments of X.
C. Opportunity costs do not apply to Panel A but apply to Panel B.
D. Panel A does not represent an economy that is producing efficiently while Panel B does.
Answer: B
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Answer the following statement(s) true (T) or false (F)
1. The change in health, ecological, and property damages linked to environmental policy is known as incremental benefits. 2. An indirect gain to society attributable to environmental policy implementation is referred to as a primary environmental benefit. 3. Increased fish populations linked to water pollution policy would be a type of secondary environmental benefit. 4. In theory, the concept of incremental benefits refers to the change in MSB of environmental quality from a pre-policy level to a post-policy level. 5. If the MSB function for some measure of environmental quality were known, the change in TSB associated with a policy initiative could be measured by the area under the MSB between the pre- and post-abatement levels.
Which of the following statements is true of the price elasticity of? demand?
A) As the number of substitutes for a product increases, the price elasticity of demand for that good decreases. B) If the budget share of a particular good in a consumer's bundle increases, the price elasticity of demand for that good is likely to decrease. C) The price elasticity of demand for a good is generally higher in the long run than in the short run. D) The demand for a good with a price elasticity of demand of zero is highly responsive to price changes.
Which of the following might increase the supply curve of labor?
a. Elimination of discrimination against blacks. b. Elimination of discrimination against females. c. Easing licensing requirements. d. All of these.
Which of the following is a characteristic of a perfect competition?
a. Firms can enter and exit a market freely. b. Two or three firms produce identical products. c. A few buyers are available to purchase a good. d. Sellers and buyers have limited product information.