The production possibilities curve has a negative slope because
a. producing more of one good means producing less of the other
b. efficiency declines as more of one good is produced
c. consumers want to buy more of a good as its price decreases
d. it becomes harder to find workers as more goods are produced
e. the law of increasing costs is violated
A
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When oil prices increased to record levels in the 1970s, salaries dramatically increased for petroleum geologists skilled in finding oil. Those geologists who moved from other areas to the higher paying jobs were
a. seeking to profit from society's needs rather than following the guidance of the invisible hand, which would have led them to seek jobs serving society rather than jobs with higher pay. b. following the guidance of the invisible hand and probably serving society's best interests as well as their own. c. causing oil prices to rise even more by moving to jobs with higher salaries. d. helping themselves but hurting the economy.
Ellie and Brendan both produce apple pies and vanilla ice cream. If Ellie's opportunity cost of one apple pie is 1/2 gallon of ice cream and Brendan's opportunity cost of one apple pie is 1/4 gallon of ice cream, a mutually advantageous trade can be struck at a price of one apple pie for 1/3 gallon of ice cream
a. True b. False Indicate whether the statement is true or false
Which of the following is NOT a characteristic of a market in equilibrium?
A. There is neither excess supply nor excess demand. B. Sellers can sell as many units as they want at the equilibrium price. C. Neither buyers nor sellers want the price to change. D. Buyers can buy as many units as they want at the equilibrium price.
Which of the following best fits the definition of basic research?
A. Research into ultra-capacitors that store electrical energy for use in hybrid vehicles B. Research into mosquito physiology to find vulnerabilities to be exploited by future pesticides C. Research into a process that converts radioactive fly ash from coal-burning power plants into bricks D. A study of parallel universes