According to the production possibilities model, if more resources are allocated to the production of physical and human capital, then which of the following is likely to happen?
A) The country's total production will fall.
B) The production possibilities frontier will shift inward in the future.
C) Fewer goods will be produced for consumption today.
D) Future economic growth will decline.
C
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Refer to Figure 16-6. With this pricing scheme - a competitive price for the classes and a one-time membership fee - what amount of producer surplus will Sensei earn?
A) the area A + B + C + D + E + F + G + H B) the area E + F. C) the area H + G + F. D) the area A + B + C + D + E.
If only one firm in an industry could take advantage of a reduced wage and all other firms continue paying the old wage, how would one best describe the one firm's reaction to this reduced wage assuming labor is the only variable input? The
marginal revenue product of labor curve A) would remain unchanged, and the firm would hire more labor at the lower wage. B) shifts to the left, and the firm hires more labor at the lower wage on the new curve. C) shifts to the right, and the firm hires more labor at the lower wage on the new curve. D) shifts to the left, and the firm hires less labor at the lower wage on the new curve. E) shifts to the right, and the firm hires less labor at the lower wage on the new curve.
An example of a price ceiling would be:
a. a ration coupon. b. a guarantee of a target price for farm products. c. parity pricing. d. rent control. e. the soil bank program.
The concept of a "merit good" violates the presumption of "consumer sovereignty"
Indicate whether the statement is true or false