On a production possibilities curve, the opportunity cost of good X, in terms of good Y, is represented by the:
a. distance to the curve from the vertical axis.
b. distance to the curve from the horizontal axis.
c. movement along the curve.
d. all of these.
c
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Answer the following statements true (T) or false (F)
1. The study of economics is primarily theoretical and has very little practical application. 2. Economics is considered a physical science. 3. Economies must make choices because resources are limited while wants are unlimited. 4. Production is the creation or addition of utility.
If the expected gains on stocks rise, while the expected returns on bonds do not change, then
A) the demand curve for bonds will shift to the right. B) the supply curve for loanable funds will shift to the right. C) the equilibrium interest rate will fall. D) the equilibrium interest rate will rise.
Accountants do not calculate __________ differently than do economists. a. Total revenue
b. Total costs. c. Profits. d. Any of the above.
Which of the following best defines productive efficiency?
a. Producing without waste b. Producing what society prefers c. Selling goods at the lowest cost d. Competing with identical goods