Explain the concept of the law of increasing additional cost
What will be an ideal response?
The law of increasing relative cost is the fact that the opportunity cost of additional units of a good increases as society tries to produce more of that good. This accounts for the bowed-out shape of the production possibilities curve.
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The minimum supply-price is the same as
A) marginal cost. B) market price. C) producer surplus. D) profit.
Which of the following is true of markets characterized by positive externalities?
a. Social value exceeds private value, and market quantity exceeds the socially optimal quantity. b. Social value is less than private value, and market quantity exceeds the socially optimal quantity. c. Social value exceeds private value, and market quantity is less than the socially optimal quantity. d. Social value seldom exceeds private value; therefore, social quantity is less than private quantity.
If it took as many dollars to buy goods in the United States as it did to buy enough currency to buy the same goods in India, the real exchange rate would be computed as how many Indian goods per U.S. goods?
a. one b. the number of dollars needed to buy U.S. goods divided by the number of rupees needed to buy Indian goods c. the number of rupees needed to buy Indian goods divided by the number of dollars needed to buy U.S. goods d. None of the above is correct.
Poverty is a condition where a person or family does not have the means to:
A. Satisfy all wants B. Save enough for the future C. Earn a stable income D. Meet basic needs