When constructing a production possibilities frontier, which of the following assumptions is not made?
a. The economy produces only two goods or two types of goods.
b. Firms produce goods using factors of production.
c. The technology available to firms is given.
d. The quantities of the factors of production that are available are increasing over the relevant time period.
Ans: d. The quantities of the factors of production that are available are increasing over the relevant time period.
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The above figure shows the market demand curve for telecommunication while driving one's car (time spent on the car phone). If the price were zero, consumer surplus equals
A) $301.00. B) $924.50. C) $1,225.50. D) $1,250.00.
If a market is a duopoly and additional firms enter and do not cooperate, then
a. price and quantity fall. b. price and quantity rise. c. price falls and quantity rises. d. price rises and quantity falls.
When economists say the supply of a product has decreased, they mean that:
A. the supply curve has shifted to the left. B. the product price has decreased, and as a consequence, suppliers are producing less of the product. C. producers are now willing to sell more of this product at each possible price. D. the supply curve has shifted to the right.
Outputs in the production process are
A. money. B. resources. C. goods and services of value to households. D. pollution.