Consider the production possibilities frontier displayed in the figure shown. Which of the following statements is true? The opportunity cost of one watermelon:
A. will decrease as more watermelons are produced.
B. is constant.
C. will increase as more watermelons are produced.
D. is zero at point C.
B. is constant.
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Which of the following changes does NOT shift the short-run aggregate supply curve?
A) an increase in the price level B) an increase in technology C) an increase in the quantity of capital D) an increase in the money wage rate
If a perfectly competitive apple farm's marginal revenue exceeds the marginal cost of the last bushel of apples sold, what should the farm do to maximize its profit?
A) increase output B) decrease output C) lower its price to sell more D) determine what the total revenue and total cost of production are
Theoretically, when a currency depreciates one can predict that
a. the price level will rise and real GDP will rise. b. the price level will fall and real GDP will fall. c. real GDP will rise, but price change is not predictable. d. the price level will rise, but real GDP change is not predictable.
The study of the decision-making process of government is the study of:
A. Keynesian economics. B. public choice theory. C. rational expectations theory. D. social economics.