The slope of the production possibility frontier shows
a. how inputs must be changed to keep them fully employed.
b. the technically efficient combinations of the two goods.
c. how demanders are willing to trade one good for another.
d. the opportunity cost of one good in terms of the other.
d
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In the table above, how many jackets must Mark forgo for every dress he makes?
A) 2/3 of a jacket B) 1 jacket C) 24 dresses D) 16 jackets E) 1 1/2 jackets
The labor supply curve is backward bending because
A) as the wage rate rises, the substitution effect becomes larger than the income effect. B) as the wage rate rises, the income effect becomes larger than the substitution effect. C) an increase in the wage rate shifts the supply of labor curve leftward at higher wages. D) an increase in the wage rate shifts the supply of labor curve rightward at higher wages.
A major fruit juice manufacturer failed in its attempt to engage in price discrimination between students and all other consumers. What is a possible explanation for this failure?
a. There was nothing to prevent the students from reselling the fruit juice to other consumers. b. The fruit juice manufacturer produced in a perfectly competitive market. c. The two groups of consumers probably have the same demand elasticity for fruit juice. d. The cost of producing the product is relatively high. e. Demand for fruit juice is probably inelastic.
Economic analysis assumes that
a. people act only out of selfish motives. b. people are motivated by a variety of forces; however, changes in personal benefits and costs affect behavior only when individuals are motivated by selfishness. c. people are basically unselfish, and their actions are, therefore, difficult to predict. d. changes in the personal benefits and costs associated with an activity will exert a predictable influence on the behavior of both those who are selfish and those who are unselfish.