If opportunity costs are constant, then
A) the production possibilities curve does not exist.
B) the production possibilities curve bows outward.
C) the production possibilities curve is a negatively sloped straight line.
D) factors of production must not be fully employed.
Answer: C
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Which of the following might be an example of an economic argument against advertising?
a. It causes the demand for the good to be more elastic b. It allows the producer to earn an economic profit in the long run c. People may be deluded into thinking that a good with a brand name is better than an otherwise identical generic brand d. The claims made in the ads are almost always false
Which of the following observations concerning the Phillips curve is not true?
A. They are normally upward-sloping. B. They are more commonly constructed for price inflation. C. They depict the inverse relation between wage inflation and unemployment. D. They depict the rate of unemployment on the horizontal axis.
Marginal utility of the second slice of pizza you eat is larger than the marginal utility of the first slice of pizza you eat.
a. true b. false
For a monopolist
A) marginal revenue is equal to price for all units being sold. B) marginal revenue is less than price for all units being sold except the first unit. C) marginal revenue is greater than price for all units being sold except for the first unit. D) there is no relationship between marginal revenue and price.