Consider two points on the PPF: point A, at which there are 50 oranges and 100 apricots, and point B, at which there are 51 oranges and 98 apricots. If the economy is currently at point B, the opportunity cost of moving to point A is
A) 2 apricots.
B) 1 orange.
C) 98 apricots.
D) 3 oranges.
B
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One of the sources of cyclical unemployment is _____
a. flexible wages b. sticky downward wages c. the constant movement of workers between jobs d. the fundamental changes in the nature of an economy
When the market value of the dollar falls relative to other currencies around the world, we say that
A) the supply of dollars has decreased. B) the dollar has depreciated. C) the demand for dollars has decreased. D) the dollar has appreciated.
If producing more output increases average cost then
A) there are diseconomies of scale. B) there are economies of scope. C) there are diseconomies of scope. D) there are no economies of scale.
With a monopolist's outcome, producer surplus is:
A. higher than that of a competitive market. B. lower than that of a competitive market. C. the same as that of a competitive market. D. Any of these is possible.