Using a production possibilities curve, a technological advance that increases the amount of output for the same amount of inputs would be illustrated as a(n):
a. flattening of the curve.
b. movement from one point to another point along the curve.
c. outward shift of the curve.
d. movement from a point on the curve to a point inside the curve.
Ans: c. outward shift of the curve.
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Kelly's marginal utilities for magazines and packages of gummy bears are listed in the table above. What is the extra utility received by Kelly when she decides to consume 3 packages of gummy bears instead of 2 packages?
A) 20 B) 160 C) 180 D) 540
The federal government is concerned about the negative effects of cigarette smoking in the United States. Suppose Congress is considering two plans. One plan would limit the production of cigarettes. The other would require manufacturers to include graphic photos on cigarette packages of people suffering cancer's effects. Which of the following statements is true?
a. Both programs would increase the price of cigarettes. b. Both programs would reduce the quantity of cigarettes sold. c. Both programs would decrease revenues for cigarette manufacturers. d. All of the above are correct.
Mary takes out a fixed interest rate loan and then inflation rises more than expected. The real interest rate she pays is
A. higher than she'd expected, and the real value of the loan rises. B. higher than she'd expected, and the real value of the loan falls. C. lower than she'd expected, and the real value of the loan rises. D. lower then she'd expected, and the real value of the loan falls.
The fact that common stockholders are residual claimants means the stockholders:
A. receive their dividends before any other residuals are paid. B. have a claim against the revenue that remains after everyone else is paid. C. are paid any past due dividends before other claims are paid. D. are paid before the bondholders but after any taxes are paid.