If a government begins offering grants and loans to encourage entrepreneurial activity, it will cause the production possibilities curve to ______.
a. shift outward
b. trend downward
c. stay the same
d. disappear
a. shift outward
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The relationship between the level of prices and total quantity of goods and services producers are willing to supply is represented by the
A) aggregate supply curve. B) aggregate demand curve. C) sticky price curve. D) GDP multiplier.
Perfect competition ________ a fair outcome ________
A) achieves; because both the fair rules and fair results conditions are met B) achieves; because total surplus is maximized C) does not achieve; because entrepreneurs only earn a normal profit D) does not achieve; because firms must be price takers E) may achieve; if average total costs are minimized
Profit is the payment made for land resources
a. True b. False
If the price elasticity of demand for a good is 0.45, it is most likely that the good
a. has many close substitutes b. is a luxury good c. is high-priced d. is a complementary good e. has a demand curve that is price inelastic