Economic growth
A. Refers to an increase in output.
B. Causes the production possibilities curve to shift inward.
C. Cannot be sustained over time.
D. Means that capacity has decreased in the short run.
Answer: A
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You participate in a taste test for a new protein supplement called "Kapow." You are given five consecutive one ounce vials of the supplement and after consuming each vial you are asked to note your reaction
You consume the first vial and your response is: "Hmmm, quite good!" After the second, you say, "Not bad at all." After the third, you note, "It's alright." and after the fourth you wince, "No more, the after-taste is getting to me. I need water." What economic principle does this scenario illustrate? Define the principle.
Refer to the above figure. Perfect income equality is shown by
A) the horizontal axis. B) the vertical axis. C) curve A. D) curve D.
Suppose that an individual has a constant MRS of shoes for sneakers of 4:3 (that is, he or she is always willing to give up 3 pairs of sneakers to get 4 pairs of shoes). Then, if sneakers and shoes are equally costly, he or she will:
a. buy only sneakers. b. buy only shoes. c. spend his or her income equally on sneakers and shoes. d. wear sneakers only 3/4 of the time.
A perfectly competitive firm can:
A. affect the market price for its good. B. sell as much as it can produce at the market price. C. prevent entry of other firms into their market. D. collude with its competitors to set prices.