On a production possibilities frontier, the opportunity cost of one more unit of a commodity per time period is measured by the
a. monetary price of the commodity
b. amount of the other commodity that must be sacrificed
c. amount of unemployed resources that must be used
d. amount of satisfaction it gives consumers
e. amount of tax paid to government for production, sale, and use of the commodity
B
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To compare the change in physical production (GDP) between 2010 and 2016, we should compare ________ GDP in 2010 with ________ GDP in 2016.
A. nominal; nominal B. real; real C. real; nominal D. current dollar; current dollar
Typically, the ________ in a country, the higher the level of spending per person on health care
A) higher the level of income per person B) higher the level of income taxes C) larger the population D) lower the median age of the population
For profit-maximizing monopolies, explain why the boundaries on the Lerner Index are 0 and 1
What will be an ideal response?
If the external costs of production are not taken into account, then production will
A) be less than socially desirable. B) be more than socially desirable. C) be the same since only prices are affected by externalities. D) cease.