Which of the following statement is false?
a. Every economic choice has an opportunity cost
b. Economic growth is illustrated as an inward shift of the production possibilities curve
c. The production possibilities curve shows the maximum combination of two goods that an economy can produce
Answer: b. Economic growth is illustrated as an inward shift of the production possibilities curve
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Which of the following demonstrates the endowment effect?
A) If you received a good as a gift, you are less likely to attach a monetary value to the good. B) Isabella was not willing to part with her "Chris Hemsworth" poster although she was offered $100 for it, a sum greater than what it costs to purchase another such poster. C) Chris Hemsworth commands a premium in the movie industry because he is endowed with dashing looks. D) Whelan inherits a cottage in Cape Cod from his grandfather and is unwilling to sell it for sentimental reasons.
Which of the following is not a form of money?
a. checkable deposits b. travelers' checks c. currency d. credit cards
Labor productivity measures
a. input per machine per hour b. input per laborer per hour c. output per machine per hour d. output per laborer per hour e. output per unit of land per hour
Suppose a taxpayer has an income of $100,000 and a taxable income of $80,000, and pays taxes of $10,000. If the taxpayer talks of being taxed at a 10 percent rate, she is referring to the
A. Effective tax rate. B. Nominal tax rate. C. Average tax rate. D. Marginal tax rate.