The optimal point on a production possibilities curve is achieved where:
A. the smallest physical amounts of inputs are used to produce each good.
B. each good is produced at a level where marginal benefits equal marginal costs.
C. large amounts of capital goods are produced relative to consumer goods.
D. large amounts of consumer goods are produced relative to capital goods.
Answer: B
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Activists of the policies believe that
A) the self-correcting mechanism through wage and price adjustment is very slow. B) wages and prices are sticky. C) the government needs to pursue active policy to eliminate high unemployment when it develops. D) all of the above.
In the consumption function model, the 45-degree line represents where
A) the real disposable income is equal to zero. B) planned real saving is equal to zero. C) planned real consumption spending is equal to zero. D) planned real saving is greater than actual real savings.
Land includes all of the following except
a. a virgin forest b. natural-state real estate c. oil under the oceans d. deposits of copper e. an irrigation system
As the number of firms in a Cournot oligopoly ________, the equilibrium quantity gets closer to the ________ equilibrium quantity.
A) decreases; perfectly competitive B) increases; monopoly C) increases; perfectly competitive D) decreases; monopolistically competitive