If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be
A. a negatively sloped straight line.
B. negatively sloped and "bowed inward" toward the origin.
C. negatively sloped and "bowed outward" from the origin.
D. a positively sloped straight line.
Answer: C
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Tax evasion is more likely to occur when people feel that their tax dollars are not being used properly.
A. True B. False C. Uncertain
Consider an economy with only two goods: bread and wine. In 1982, the typical family bought 4 loaves of bread at 50¢ per loaf and 2 bottles of wine for $9 per bottle. In Year X, bread cost 75¢ per loaf and wine cost $10 per bottle. The CPI for Year X (using a 1982 base year) is:
a. 100. b. 115. c. 126. d. 130.
If marginal utility is zero
A. total utility increases at an increasing rate. B. total utility is at a maximum. C. people will consume more of the good only if the price is zero. D. total utility increases at a decreasing rate.
Refer to the above table. Given the demand and cost schedules, what is the profit-maximizing price for this monopolist?
A. $3 B. $7 C. $4 D. $6