A combination of two goods which lies beyond the production possibilities curve indicates:
a. underutilization of resources
b. overutilization of resources.
c. constant opportunity costs.
d. a combination that cannot be produced with existing resources.
e. society's most preferred combination of two goods.
d
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According to estimates by Richard Vedder, rates of exploitation for slaves:
a. are similar to those of antebellum manufacturing workers. b. indicate that slaves received nearly the full marginal value product of their labor. c. equaled 50-65 percent of their value marginal product. d. cannot be determined due to inadequate data on maintenance costs of adult slaves.
A credence good is a product
A. that emphasizes the features of its product. B. that an individual must consume before the quality can be established. C. with characteristics that enable an individual to evaluate the product's quality in advance of a purchase. D. with qualities that consumers lack the expertise to assess without assistance.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, a decrease in unemployment may be represented by the movement from
A. B to A. B. C to D. C. B to D. D. A to C.
In the above figure suppose there is only one milk producer who chooses to restrict milk production to two million gallons per day
What is the size of the deadweight loss? (Hint: It is equal to the triangular area of consumer and producer surplus that is lost because of the reduction in output.) A) $12.5 million B) $6.25 million C) $2.25 million D) none of the above