Refer to the above figure. Production at Point E
A) would indicate that this economy is producing beyond its capabilities.
B) would indicate production at a level below that which is attainable.
C) is not attainable with given resources and technology.
D) would demonstrate a total lack of technical expertise.
B
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Answer the next question based on information in the following table.ProductPercentage Change in IncomePercentage Change in Quantity DemandedW?1?1X+6+3Y?1+1Z+4+8Which product would be an inferior good?
A. product W B. product X C. product Y D. product Z
If insurance companies knew how risk-averse their customers were:
A. adverse selection would not occur. B. diversification would not occur. C. policies would be perfectly diversified, resulting in lower premiums for everyone. D. risk pooling would not occur.
If a price-taker firm selling in a competitive market offers its product at a higher price than others, it will
a. increase its profits. b. maintain its profit base if the demand for the product is inelastic. c. be able to expand output. d. not be able to sell any output.
Some of our farm fields are being left unused. Does this have any implications for the economy's PPF diagram (with agricultural products on one axis and all other products on the other axis)?
A) No implications, because the PPF deals only with resources in use. B) The PPF cannot be drawn if some resources are idle. C) With unemployed resources, we are at a point below the PPF. D) The PPF would be upward sloping.