Robinson Crusoe divides his time between catching fish and gathering fruit. Part of his production possibilities frontier is given in the above table. If Mr
Crusoe is on his PPF and he increases the amount of fruit he gathers from 56 to 90 pounds, the opportunity cost is
A) 34 pounds of fruit.
B) 90 pounds of fruit.
C) 17 pounds of fish.
D) 37 pounds of fish.
E) 31 pounds of fish.
C
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Which of the following is true about underground economies?
a. Underground economies represent a greater percentage of GDP in developing countries than in developed countries. b. Higher taxation and labor regulation are reasons why we see more underground activities c. The underground economy includes legal activities that are concealed for the purpose of tax evasion. d. all of the above
Within the production possibilities frontier (PPF) framework, choice is depicted by the
A) PPF itself. B) PPF being bowed outward. C) need to select among the points making up the PPF. D) straight-line PPF.
What factor has the greatest influence on elasticity and inelasticity of supply?
a. profit b. labor c. time d. financing
The efficient response to a policy that provides free or heavily subsidized care to a substantial number of people is to:
a. shift the cost of free care to the fully insured population. b. provide incentives to expand the availability of medical services. c. initiate price controls to lower spending. d. ration care by using waiting lists. e. establish limited provider networks to redirect demand to preferred providers who follow published guidelines.