Any point inside a production possibilities curve indicates:
A) unemployment and/or inefficiency.
B) that the law of increasing opportunity costs is no longer valid.
C) that society doesn't want more of either good.
D) that economic growth is no longer possible.
Ans: A) unemployment and/or inefficiency.
You might also like to view...
Suppose milk and cereal are compliments and the demand for milk is Qdm = 40 - 6Pm - 2Pc, where Qdm stands for millions of gallons of milk demanded, Pm stands for the price of milk and Pc stands for the price of cereal. The supply of milk is Qsm = 6Pm - 8, where Qsm stands for millions of gallons of milk supplied. The demand and supply of cereal are Qdc = 90 - 5Pc - Pm and Qsc = 5Pc - 10, respectively, where Qdc stands for millions of boxes of cereal demanded and Qsc stands for millions of boxes of cereal supplied. Suppose the government imposes a $2.00 per gallon tax on milk. The formula for the market-clearing curve for milk after the tax is:
A. Pm = 4 - (Pc/6). B. Pm = 5 - (Pc/6). C. Pm = 5 + (Pc/6). D. Pm = 2 - (Pc/6).
Sam has been invited to go to the movies with one friend and to Dairy Queen for ice cream with another friend. Because he has only $5.00, Sam can't do both. If he decides to go the movies, the opportunity cost of his choice is
A. staying at home. B. both the ice cream and the movie. C. ice cream at Dairy Queen. D. the movie.
All of the following are true of the labor-supply and labor-demand curves intersection except they:
A. only intersect once. B. intersect at the revenue-maximizing quantity for the firms in the market. C. intersect at the equilibrium wage. D. intersect at the profit-maximizing quantity for the firms in the market.
Under the VER of the 1980s, U.S. automakers:
a. continued their downward slide. b. could not recover because they were also faced with other issues, such as labor unrest, increased oil and steel prices, and higher taxes. c. were able to raise prices and improve quality to get even higher prices. d. were able, with the quota, to ignore world market conditions.