In terms of efficiency, any point on a production possibilities frontier is as good another.
Answer the following statement true (T) or false (F)
True
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Higher rates of interest increase the opportunity cost of holding money balances
a. True b. False Indicate whether the statement is true or false
Which of the following quantities decrease in response to a tax on a good?
a. the equilibrium quantity in the market for the good, the effective price of the good paid by buyers, and consumer surplus b. the equilibrium quantity in the market for the good, producer surplus, and the well-being of buyers of the good c. the effective price received by sellers of the good, the wedge between the effective price paid by buyers and the effective price received by sellers, and consumer surplus d. None of the above is necessarily correct unless we know whether the tax is levied on buyers or on sellers.
When opening a print shop you need to buy printers, computers, furniture, and similar items. Economists call these expenditures
a. capital investment. b. investment in human capital. c. business consumption expenditures. d. personal saving.
In the kinked-demand model of noncollusive oligopoly, each firm thinks the demand curve below the going price is:
A. more elastic than the demand curve above the going price. B. less elastic than the demand curve above the going price. C. less elastic than the marginal revenue curve above the going price. D. more elastic than the marginal revenue curve above the going price.