The following graph is the production possibility curve for a three-person economy, with workers Janna, Drew, and Karl.
The slope of the PPC between points X and Y is determined by ________ opportunity cost.
A. Janna's
B. Drew's
C. Janna and Drew's
D. Kari's
Answer: B
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Refer to Table 20.2. Is the tax system represented in the table progressive, regressive, or neither one? How can you tell?
What will be an ideal response?
Which type of resource will improve through more education and training by workers?
A) money B) physical capital C) natural resources D) human capital
Answer the following questions true (T) or false (F)
1. The income effect of a price increase for a Giffen good outweighs the substitution effect. 2. The demand curve for an inferior good can never be downward sloping. 3. The demand curve for a luxury good is upward sloping.
Refer to Scenario 9.5 below to answer the question(s) that follow. SCENARIO 9.5: Investors put up $520,000 to construct a building and purchase all equipment for a new restaurant. The investors expect to earn a minimum return of 10 percent on their investment. The restaurant is open 52 weeks per year and serves 900 meals per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10% return to the investors and $1,000 per week in other fixed costs. Variable costs include $1,000 in weekly wages and $600 per week for materials, electricity, etc. The restaurant charges $3 on average per meal. Refer to Scenario 9.5. The restaurant's weekly economic profit is
A. zero. B. positive. C. negative. D. break-even.