Given a production possibility curve for good X (on the x-axis) and good Y (on the y-axis), the opportunity cost of increasing good X is greatest when the slope of the production possibility curve is:
A. 6.
B. 4.
C. ?6.
D. ?4.
Answer: C
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Refer to Scenario 15.2. If the interest rate were 20%, Furry Software should
A) retool the offices. B) rewire the network. C) move to Southern California. D) be indifferent between retooling and rewiring. E) be indifferent between retooling and moving.
Mountain bikers and rollerbladers share the only trail in a city park. The city allows everybody into the park and onto the trail. The mountain bikers say the rollerbladers are a hazard to them; the rollerbladers say it's the other way around. Frequently there are collisions and many injuries occur. Which of the following ways of dealing with the problem does not implicitly grant someone a
property right? a. Allow bikers to use the trail on odd-numbered days and rollerbladers to use it on even-numbered days. b. Allow bikers to use the trail in the morning and rollerbladers to use it in the afternoon. c. Allow only bikers in the park because they have invested in the more expensive sports equipment. d. Kick everybody out of the park. e. Build another trail, put rollerbladers on one and bikers on the other, and give bikers the right-of-way at intersections.
Free trade refers to trade between countries
A) that is without shipping costs. B) that is licensed by both governments. C) that is without restrictions. D) of products which are free to low-income consumers.
Other things equal, an increase in consumer wealth will:
A. Increase aggregate supply B. Increase aggregate demand C. Reduce the price level D. Reduce the money supply