If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be
A. a negatively sloped straight line.
B. negatively sloped and "bowed inward" toward the origin.
C. negatively sloped and "bowed outward" from the origin.
D. a positively sloped straight line.
Answer: C
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The requirement for a double coincidence of wants occurs when
A) there is inflation. B) there is deflation. C) a system of barter is used. D) the medium of exchange is liquid.
The market equilibrium quantity:
A. is sometimes the socially optimal quantity. B. is the socially optimal quantity. C. is not the socially optimal quantity. D. maximizes total economic surplus.
Internationally, the TRIPS agreement is uniformly regarded as a positive step for world prosperity
Indicate whether the statement is true or false
Firm A produces something that Firm B uses as an input. The product of Firm B, in turn, is purchased and used as an input by Firm C, and so on down the line through Firm E, which produces the end product. The total value added by Firms A-E from the production of the end product described here is:
A.
$3,000
B.
$3,800
C.
$6,500
D.
$10,300