An example of an uncontrollable resource that contributes to diseconomies of scale for a movie theater is
a. concession stand staff
b. public roads congested with traffic
c. volume discounts from movie distributors
d. a single lobby in the theater
e. bigger, more noticeable newspaper ads
B
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Legal restrictions on competition, such as the grant of patent privileges to inventors,
A) destroy property rights. B) expand property rights. C) both destroy and expand property rights. D) neither destroy nor expand property rights because patents are granted by the U.S. Constitution.
Is it possible in the present to produce at a point that is outside the production possibilities frontier? Why or why not? With the passage of time how might a point outside the present production possibilities frontier be possible?
What will be an ideal response?
Suppose the quantity of x is measured on the horizontal axis. If the income consumption curve is vertical, then the income elasticity of demand for x is
A) 0. B) 1. C) -1. D) There is not enough information to determine the income elasticity of demand for x.
The graph above shows the production possibilities curve for an economy producing two goods, X and Y. Which of the points on the graph indicate unemployed resources?
A. D only B. E and A only C. B and C only D. A, D, and E only