A production possibilities curve will be concave as opposed to straight line if
a. the law of increasing opportunity costs applies
b. some resources cannot be easily adapted to different tasks.
c. the opportunity cost of the production of a good increases as more of it is produced.
d. all of the above
d
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When the price of an asset is growing rapidly, speculators:
A. usually look for other investment opportunities. B. have a strong incentive to sell the asset before its price gets even higher. C. often rush to buy the asset in the hopes of selling it later at a profit. D. typically refrain from buying the asset because they know its price will eventually fall.
The U.S. Department of Energy is investing $60 billion in rural parts of the U.S., largely in the Great Plains, in order to develop what alternative source of energy?
a. Wind power b. Solar power c. Biofuels d. Hydroelectric
In which of the following auction types do participants have substantial information about competitors' bids?
A) Dutch auction B) sealed-bid second-price auction C) sealed-bid first-price auction D) English auction
A friend of yours asks you why market prices are better than government-determined prices. Because you understand economic principles, you say that market-determined prices are better because they generally reflect
a. the value of a good to society, but not the cost of making it. b. the cost of making a good to society, but not its value. c. both the value of a good to society and the cost of making it. d. neither the value of a good to society nor the cost of making it.