Points lying below a production possibilities curve are:
A) inefficient because more can be produced with the available resources.
B) inefficient because they represent the production of only one good.
C) efficient because combinations represented by those points are attainable.
D) efficient because production is maximum on those points with the available resources.
A
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The CPI is a measure of the:
A. rate of inflation. B. real wage. C. price of a specific good or service. D. average level of prices relative to prices in the base year.
In a dual economy, it is generally the case that the majority of the population works in the:
A. market economy. B. international sector. C. traditional (barter) economy. D. manufacturing sector.
The Latin phrase ceteris paribus means
A. The production possibilities curve never shifts. B. Other things remain equal. C. The invisible hand. D. Laissez faire.
Which of the following is true?
A. In the short run, a monopoly will shut down if P < AVC. B. A monopolist produces on the inelastic portion of its demand. C. A monopolist always earns an economic profit. D. The more inelastic the demand, the closer marginal revenue is to price.