Answer the following statement(s) true (T) or false (F)
1. The points that are directly on a production possibilities curve represent varying levels of efficiency.
2. A production possibilities curve that is bowed outward illustrates the law of increasing opportunity cost.
3. The Law of Increasing Opportunity Cost refers to the condition where the opportunity cost of producing additional units of a good rises as society produces more of that good
4. The economy can grow only with qualitative or quantitative changes in the factors of production.
1. False
2. True
3. True
4. True
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Drug interdiction, which reduces the supply of drugs, will likely be a less effective policy than educating consumers to reduce their demand for drugs because the drug interdiction policy will lower drug prices and reduce the quantity of drugs demanded
a. True b. False Indicate whether the statement is true or false
We say that goods are substitutes when they:
A. serve similar-enough purposes that a consumer might purchase one in place of the other. B. are consumed together, so that purchasing one will make a consumer more likely to purchase the other. C. can replace something consumers typically purchase at a significantly lower price. D. change a consumer's preferences for a good or service.
If macaroni and cheese is an inferior good, then an increase in
a. the price will cause the demand curve for macaroni and cheese to shift to the left. b. the price will cause the demand curve for macaroni and cheese to shift to the right. c. a consumer's income will cause the demand curve for macaroni and cheese to shift to the left. d. a consumer's income will cause the demand curve for macaroni and cheese to shift to the right.
One of the challenges for development economists working in health care is to figure out a way to:
A. increase the frequency of preventative medicine, such as immunizing children. B. force doctors to practice good medicine. C. have the government get more involved in production of necessary healthcare item. D. mandate through government policy that families must make better health care choices.