The production possibilities curve shifts outward when
A. there is an increase in resources or technology.
B. the economy is producing efficiently.
C. we produce more consumption goods over productive investment in equipment.
D. the law of increasing additional cost takes hold.
Answer: A
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Suppose that the equilibrium price of french fries rises while the equilibrium quantity falls. The most likely explanation for these changes is:
A. an increase in the supply of french fries. B. an increase in demand for french fries. C. a decrease in demand for french fries. D. a decrease in the supply of french fries.
Cisco is considering opening a financial institution that accepts savings deposits from only its employees and makes loans to only its employees. The best description of this financial institution is that it is a
A) credit union. B) savings and loan association. C) federal government chartered credit bank. D) commercial bank. E) savings bank.
Relating to the Economics in Practice on page 337: A number of companies are using their own internal carbon taxes to reflect the social cost of carbon emissions on the environment. The price per ton of carbon emissions that they are using
A) has been set by the government. B) has been agreed to by the private sector. C) is not standardized. D) is the price established by the EPA
Which of the following is a legal right to control who may produce a good?
A. A patent B. A controller C. A legal controller D. A proxy