Suppose there are only two people in the world. Each person's production possibilities frontier also represents his or her consumption possibilities when
a. neither person faces trade-offs.
b. the frontiers are straight lines.
c. the frontiers are bowed out.
d. they choose not to trade with one another.
d
You might also like to view...
An eclectic aggregate supply curve:
A. Is the supply-side counterpart to monetarist and Keynesian assumptions about the shape of aggregate demand. B. Combines elements of the monetarist and Keynesian assumptions about the shape of aggregate supply. C. Maintains a constant upward slope as the economy moves through the business cycle. D. Is horizontal at all levels of output.
When demand is written as log(Q) = -0.23 - 0.34 log(P) + 1.33 log(I), the price elasticity of demand equals:
0.72 -0.23 -0.34 1.33
A government subsidy to an industry having increasing returns to scale in order to capture international market share is an example of
a) an embargo b) a boycott c) strategic trade policy d) the Prebisch-Singer hypothesis e) import substitution
One of the characteristics of a contestable market is that:
A. existing firms respond quickly to entry by lowering their price. B. consumers react quickly to a price change. C. all firms have different productive technology. D. there are sunk costs.