If an economy is producing at a point on the production possibilities curve it represents:
a. full employment of existing resources.
b. the gains from trade that an economy can enjoy
c. the maximum amount of two goods that can be produced with existing resources.
d. decreasing opportunity costs of producing both goods.
e. overutilization of existing resources.
a
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If some sellers exit a competitive market, how will this affect its equilibrium?
What will be an ideal response?
In which market structure will a firm choose not to shut down when price is less than average variable cost?
A) perfect competition B) monopoly C) monopolistic competition D) None of the above. All firms will shut down when P < AVC.
The demand curve is a graphic representation of:
a. the relationship between price and quantity supplied of a certain good or service. b. the relationship between price and quantity demanded of a certain good or service. c. the relationship between supply and demand for a certain good or service. d. the relationship between productivity and quantity demanded of a certain good or service.
Both the Bush and Obama administrations used tax cuts as a remedy to the housing “bubble.”
Answer the following statement true (T) or false (F)