The idea that tradeoffs have to be made when resources are scarce is reflected in the fact that:
A. the slope of a linear production possibilities is constant.
B. the production possibilities curve has a negative slope.
C. points below the production possibilities curve are efficient.
D. points below the production possibilities curve are inefficient.
Answer: B
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The marginal cost curve crosses
a. only the average variable cost curve at its bottom. b. both the average cost curve and the average variable cost curve at their bottoms. c. only the average cost curve at its bottom. d. the marginal product curve at its maximum.
Suppose the U.S. price level is 150, the German price level is 450, and the Swiss price level is 600
If exchange rates are 3 euros/dollar and 4 francs/dollar, then purchasing power parity ________ between Germany and the United States and ________ between Switzerland and the United States. A) does not hold; holds B) holds; does not hold C) does not hold; does not hold D) holds; holds
?Monopoly power can last only if there are legal barriers to entry for other firms.
Answer the following statement true (T) or false (F)
Which of the following statements explains increasing returns to scale? a. A larger firm can produce at a higher average total cost than a smaller firm. b. A larger firm can produce at a lower average total cost than a smaller firm
c. A larger corporation has lower opportunity costs than a smaller corporation. d. The cost of production for each unit of good in a small firm always increases as output increases.