The production possibilities curve illustrates
A. The existence of unlimited wants and resources.
B. The limitations that exist because of scarce resources.
C. That there is no limit to the level of output.
D. That there is no limit to what an economy can produce.
Answer: B
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Richard receives government transfer payments and currently consumes 5 guns and 6 goose livers. Assume the price of guns decreases by 10% and the price of goose liver increases by 20%
The government raises Richard's transfer payments so he can still afford 5 guns and 6 goose livers. Does this constitute a true cost-of-living adjustment (COLA)? A) No. Richard is overcompensated. B) No. Richard is undercompensated. C) Yes. The payment just achieves the right level of compensation. D) Not enough information.
How many people are unemployed if the employment ratio is 75%, there are 90 million people employed, and there are 20 million people not in the labor force?
A. 20 million B. 10 million C. 0 million D. 5 million
The demand curve shows the relationship between
A. the demand and supply schedules. B. demand and supply equilibrium. C. price and quantity demanded. D. None of these choices are correct.
Which of the following is always true for a single-price monopolist?
A) P > MR B) P < MR C) P = MR D) P = elasticity of demand E) None of the above answers is correct because none of them is always true.