A market equilibrium:
A. leaves unexploited opportunities for individuals.
B. exploits all gains achievable through collective action.
C. leaves no unexploited opportunities for individuals.
D. maximizes total economic surplus.
Answer: C
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Production possibilities frontiers usually curve out and away from the origin. The implication is
A) that as resources are used to produce one good, fewer resources are available to produce another good. B) that the opportunity cost of producing a good goes down as more of that good is produced. C) technological change is present. D) that the opportunity cost of producing a good stays the same regardless of how much of that good is produced. E) some resources are better at producing one good while other resources are better at producing alternative goods.
There is ________ to how much increases in labor inputs can increase real GDP per capita, and there is ________ to how much increases in labor productivity can increase real GDP per capita
A) a limit; a limit B) a limit; no limit C) no limit; a limit D) no limit; no limit
To maximize cartel profit, the members must allocate output so that the marginal cost for the final unit produced by each firm is
a. identical b. unequal c. negative d. equal to the firm's average total cost e. maximized
The common pool problem
a. occurs whenever goods are not rivals in consumption b. is an example of adverse selection c. arises whenever property rights are well defined d. is usually caused by government intervention into private markets e. is one in which resources to which access is unrestricted will tend to be overused