If the current mix of output is at point A and the optimal mix of output is at point D, does a market failure exist?
Ans: No.
Because both points are on PPF which shows optimal use of resources.
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An increased demand for the services of tax accountants
A) may raise their fees but cannot affect their costs. B) may raise their fees by making it more costly for them to provide services to any client. C) will lead to fewer people using the services of tax accountants because higher prices mean a smaller quantity demanded. D) will lower their fees in the long run by producing more tax accountants.
The city just sprayed for rodents in the homes whose owners allowed the workers to do so. Many people did not let the workers in, but they still have fewer rodents because of the spraying that took place nearby. This shows that the rodent spraying is ______.
a. a public good b. excludable c. a private good d. rival
Production possibilities in an economy decrease as more resources and better technology are utilized.
Answer the following statement true (T) or false (F)
The slope of an indifference curve for products X and Y is the ratio of the marginal utility of product X to the marginal utility of product Y.
Answer the following statement true (T) or false (F)