Inefficient use of resources is shown on the production possibilities curve
A. by an inward shifting of the curve.
B. by a point inside the curve.
C. by a point outside the curve.
D. by a point near the top of the curve.
Answer: B
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International trade will:
A. decrease total surplus, which creates a role for government. B. increase total surplus only if the country is a net-importer of a particular good. C. create more efficiency. D. increase total surplus only if the country is a net-exporter of a particular good.
Figure 11.4Figure 11.4 depicts demand and costs for a monopolistically competitive firm. If the firm's demand curve shifts to the left as more firms enter the market:
A. the firm's average cost will be lower at the new profit maximizing output level. B. the firm's marginal cost will be higher at the new profit maximizing output level. C. the firm's marginal revenue will remain the same at the mew profit maximizing output level. D. the firm's marginal cost will remain the same at the new profit maximizing output level.
If government purchases are decreased by $375 and taxes are decreased by $375, the equilibrium level of income will
A. decrease by $375. B. not change. C. decrease by $750. D. increase by $375.
A move from G to H represents
A. an increase in quantity demanded.
B. a decrease in quantity demanded.
C. an increase in demand.
D. a decrease in demand.