When an economy sacrifices production of consumption goods to produce more capital goods, we would expect that the production possibilities curve will
A. shift about in random fashion.
B. become a straight line.
C. shift outward.
D. shift inward.
Answer: C
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Many theme parks charge an entrance fee and a per-ride fee equal to zero. This is an example of
A) bundling. B) a two-tier tariff. C) multimarket price discrimination. D) perfect price discrimination.
If the United Auto Workers union can obtain a substantial wage increase for auto workers, there will be
a. a decrease in the supply of automobiles, which is a shift to the right of the supply curve. b. a decrease in the supply of automobiles, which is a shift to the left of the supply curve. c. an increase in the supply of automobiles, which is a shift to the right of the supply curve. d. an increase in the supply of automobiles, which is a shift to the left of the supply curve.
Which statement is true?
A. Entrepreneurial ability is abundant in the U.S. B. The entrepreneur sets up a business and risks his or her own money. C. Land, labor and capital may be considered passive resources. D. All of the statements are true.
The average total cost (ATC) curve will be downward sloping so long as
A. Average variable cost is less than average total cost. B. Marginal cost is less than average total cost. C. Average fixed cost is less than average total cost. D. Marginal cost is greater than average total cost.