If a nation follows a policy of being self-sufficient, its:
a. production possibilities equal its consumption possibilities.
b. consumption possibilities are greater than its production possibilities.
c. production possibilities curve shifts rightward.
d. consumption possibilities are less than its production possibilities.
a
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If the government collects $10,000 in tax revenue and turns around and spends $10,000 to build a new road, and the MPC is 0.5, national income
a. is unchanged b. increases by $5,000 c. increases by $10,000 d. increases by $15,000 e. increases by $20,000
The likelihood of successful collective action:
A. generally does not depend on the size of the group. B. can be lower for small groups. C. can be higher for large groups. D. can be lower for large groups.
A profit-maximizing firm will hire additional units of labor until
A) the additional cost of hiring the last worker equals the additional revenue generated by that worker. B) the additional cost of hiring the last worker equals the marginal factor cost of the worker. C) the extra revenue from hiring the last worker equals the marginal physical product of labor. D) the extra cost from hiring the last worker equals the cost of the product.
The conclusion that a monopoly results in lower output and higher prices than perfect competition relies on the assumption that
A. the demand curve for a monopoly is horizontal. B. elasticity of demand varies along the market demand curve. C. consumers are ignorant of the effects of monopoly. D. the costs of production are the same whether the industry is perfectly competitive or a monopoly.