What do prices reflect in a market economy?
The value of a good to society and the cost to society of making the good
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Production efficiency is represented by ________ a production possibilities frontier
A) all points on B) all points inside C) all points outside D) a movement along E) only one point on
The supply curve indicates the minimum quantity that a producer would be willing to supply at alternative prices
Indicate whether the statement is true or false
An economic model is useful only if it:
a. contains no positive statements. b. captures all the complexities of reality. c. yields accurate predictions. d. has both macro- and microeconomic applications.
If the marginal utilities of the first 5 candy bars are 15, 14, 10, 7, and 3, respectively, the total utility derived from consuming all 5 candy bars is
a. 5 b. –12 c. 12 d. 35 e. 49