If the production possibilities curve is a straight line, then:
A. The opportunity cost of producing one good is zero
B. The law of increasing opportunity costs does not apply
C. The society can produce more of both goods simultaneously
D. The society is capable of producing only one of the goods and not the other
Answer: B
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Which of the following are required for economic growth? i. more goods and services produced per hour of work ii. an increase in the average hours of labor per person iii. an increase in prices
A) i and iii B) i and ii C) ii and iii D) i only E) ii only
In a closed economy, which of the following equations reflects investment? (Y = GDP, C = Consumption, G = Government purchases, T = Taxes, and TR = Transfers)
A) Y - T + TR B) Y - C - T C) C + G -T D) Y - C - G
The existence of antitrust law is one reasons economists assume that most strategic behavior in the marketplace is noncooperative
a. True b. False Indicate whether the statement is true or false
If antitrust legislation is successful, then the monopolistic firm will
A. increase output and charge a higher price than before. B. decrease output and charge a higher price than before. C. decrease output and charge a lower price than before. D. increase output and charge a lower price than before.