If an economy is operating inefficiently, then
A. the economy can increase production of consumption goods without reducing capital goods.
B. there is always a positive opportunity cost to increasing output.
C. output can only be increased through capital investment.
D. output cannot be increased.
Answer: A
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Given the scenario described, if the market price of hammers increased from $8 to $11:
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13. A. total producer surplus would increase by $3. B. total producer surplus would increase by $6. C. total producer surplus would increase by $9. D. total producer surplus would increase by $4.
If you have a $50 co-pay, you must pay ____ for each doctor’s visit.
A. $50 B. $35 C. $25 D. None of the above is correct.
If the production possibilities curve is a straight line,
a. opportunity costs rise as output of either commodity is expanded. b. resources are not equally productive in the production of both goods. c. opportunity costs are negative. d. resources can be moved from the production of one good to production of others with no loss of productivity.
To measure an economy's output adjusted for changes in the price level, one would use
A. Nominal GDP. B. GDP per capita. C. Real GDP. D. Value added.