Positive relationships are also referred to as inverse relationships
Indicate whether the statement is true or false
FALSE
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If the firm produces one more unit of output and total cost rises from $1,000 to $1,050, marginal cost is
a. $1,050. b. $1,000. c. $2,050. d. $50.
In perfect competition, as the long run approaches, economic profit will cause
a. the entry of new firms, shifting the market supply curve to the right b. the emergence of powerful monopolistic corporations c. inflation d. technological innovation e. government regulation
There are fewest problems in distinguishing between which two market structures?
a. oligopoly and monopolistic competition b. monopolistic competition and perfect competition c. monopoly and perfect competition d. oligopoly and monopoly e. oligopoly and perfect competition
Figure 2-8
The production possibility frontier in assumes that U.S. agricultural land is used either to raise cotton for clothing or to grow wheat. This is an example of a(n)
a.
critical assumption
b.
optimizing assumption
c.
assumption of scarcity
d.
simplifying assumption
e.
realistic assumption
Assume that U.S. agricultural land is used either to raise cotton for clothing or to grow wheat. Curve FG in represents the current production possibilities frontier for cotton and wheat. What could cause the production possibilities frontier to shift from FG to FH?
a.
a change in government subsidies that favors wheat production over cotton production
b.
development of a new fertilizer that improves production of wheat, but has no impact on cotton production
c.
development of a new fertilizer that improves production of cotton, but has no impact on wheat production
d.
newly reclaimed swampland that is equally suited to growing