The law of increasing opportunity cost explains why
a. opportunity cost is constant along the production possibilities frontier
b. the production possibilities frontier is downward sloping
c. the production possibilities frontier is curved
d. efficient points lie along the production possibilities frontier
e. technology remains constant along a production possibilities frontier
C
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Refer to Figure 7.1. Start from initial equilibrium. If firms reduce their capital stock, the new real wage could be ________ and the new amount of labor employed could be ________
A) X; C B) X; A C) Z; C D) Y; C
Which of the following are predicted by the classical growth theory?
i. Population growth will end economic growth. ii. Real GDP per person will return to subsistence level. iii. Technology drives persistent economic growth. A) i only B) ii only C) i, ii and iii D) i and iii E) i and ii
The table above gives the demand for a monopolist's output. What is the marginal revenue of increasing production from 4 to 5 units?
A) $70 B) $16 C) $14 D) $6
An increased equilibrium price and a decreased equilibrium quantity results from:
a. an increase in supply. b. an increase in demand. c. a decrease in demand. d. a decrease in supply.