An advantage to specialization is that it can decrease the average cost of production by concentrating on smaller-scale production.
a. true
b. false
Answer: b. false
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Refer to Figure 10-4. What is the marginal rate of substitution for one bar of chocolate between h and j?
A) of a cookie. B) of a cookie. C) 2 cookies. D) 4 cookies.
The existence of the "underground economy" causes measured GDP to overestimate actual output
a. True b. False Indicate whether the statement is true or false
Suppose that a new advertising campaign extolling the virtues of apple juice is successful, and a major freeze destroys half of the country's apple crop. What happens to the price and quantity of apple juice?
A. The equilibrium price of apple juice might rise or fall and the equilibrium quantity of apple juice falls. B. The equilibrium price of apple juice might rise or fall and the equilibrium quantity of apple juice rises. C. The equilibrium price of apple juice rises and the equilibrium quantity of apple juice might rise or fall. D. The equilibrium price of apple juice falls and the equilibrium quantity of apple juice might rise or fall.
Recently, the price of gasoline dropped to just under $3.50/gallon. Economic analysts currently are focusing on questions concerning the likely impacts of this price decrease on the demand for gasoline. The branch of economics that deals with these
questions is A) Normative economics. B) Macroeconomics. C) Positive economics. D) Microeconomics.