Answer the following questions true (T) or false (F)
1. The tangency between and iso-cost line and an isoquant represents the least cost combination of two inputs.
2. The iso-revenue line reflects the rate at which the market is willing to substitute between two products as their prices change.
3. The production possibilities curve reflects the different products the business can produce given efficient use of its existing resources.
1. TRUE
2. TRUE
3. TRUE
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Net taxes are: a. taxes plus transfer payments
b. taxes minus transfer payments. c. an injection into the economic system. d. consumption after taxes. e. government spending minus taxes.
Which of the following is an impact of the restriction on immigration on the domestic firms?
a. The domestic firms would produce more and reap greater profits. b. The domestic firms would hire more unskilled laborers at lower wages. c. The domestic firms would charge low prices for their products. d. The domestic firms would have to pay higher wages and make less profit. e. The domestic firms would make above normal profits in the long run.
If there are both external benefits and external costs associated with the production and consumption of a good, and the external benefits are greater than the external costs,
a. More than the efficient amount is being produced b. Less than the efficient amount is being produced c. the efficient amount is being produced d. We do not know whether the efficient amount, or more or less, is being produced.
Where does the World Bank get its funds?
A. from tariffs collected on goods traded internationally B. from governments of the wealthiest nations and from private financial markets C. from printing its own money D. from seizing dead capital in developing nations and selling it at auction