How does the production possibilities frontier show that every choice involves a tradeoff?
What will be an ideal response?
Movements along the PPF frontier illustrate that producing more of one good requires producing less of other good. This observation reflects the result that a tradeoff must be made when producing output efficiently.
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The marginal tax rate is
A. the percentage of all dollars of income paid in tax. B. the percentage of the last dollar of income paid in tax. C. the percentage of all dollars of income paid in tax and the percentage of the last dollar of income paid in tax. D. the percentage of all taxable dollars of income paid in tax.
Which of the following does NOT increase the supply of personal computers, that is, does NOT shift the supply curve of personal computers?
A) a fall in the cost of the components used to assemble personal computers B) a change in the expected future price of a personal computer C) an advance in the technology used to produce personal computers D) an increase in the number of firms producing personal computer E) a rise the price of a personal computer
Refer to Figure 11-11. The minimum efficient scale of output is reached at what rate of output?
A) 10,000 workers B) 10,000 picture frames C) 20,000 picture frames D) 5,000 picture frames
A minimum wage law is a:
A. price ceiling. B. price floor. C. customary norm without legal structure or protection. D. quantity restriction.