Use the figure below to answer the following question.
If the output level is Q2, then there will be
A. minimum net producer surplus.
B. greater marginal benefits than marginal costs of the product.
C. productive efficiency.
D. maximum deadweight losses.
Answer: C
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Which of the following is the best description of the effects of an increase in the supply of bread?
a. Consumers will pay more for bread. b. Bread prices will fall, and bread sales will rise. c. A permanent surplus of bread will remain on the market. d. Bakers will have higher marginal costs.
Every economic system requires a means for determining resource allocation
a. True b. False
Professor Milton Friedman stated that "inflation is a monetary phenomenon." What did he mean by this statement and what is the basis for this assertion?
What will be an ideal response?
You are the Minister of Trade for a small island country with the following annual PPC:
You are negotiating a trade agreement with a neighboring island with the following annual PPC:
If the other island's delegate offers to give you 2 fish for every 1 coconut you give them, you will:
A. refuse their offer because the opportunity cost to you of a coconut is less than 2 fish. B. accept their offer because you do not have an absolute advantage in fish. C. accept their offer because you do not have the comparative advantage in fish. D. refuse their offer because the opportunity cost to you of a coconut is more than 2 fish.