If A and B are substitute goods, an increase in the price of good A would:
A. lead to a decrease in demand for B.
B. lead to an increase in demand for B.
C. have no effect on the quantity demanded of B.
D. none of the statements associated with this question are correct.
Answer: B
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Refer to Table 2-1. Assume Dina's Diner only produces sliders and hot wings. A combination of 60 sliders and 25 hot wings would appear
A) along Dina's production possibilities frontier. B) inside Dina's production possibilities frontier. C) outside Dina's production possibilities frontier. D) at the vertical intercept of Dina's production possibilities frontier.
Net benefit is equal to total benefit minus marginal cost
a. True b. False Indicate whether the statement is true or false
The optimal output of a public good occurs where
A. the total cost of the good equals the cumulated benefits of all consumers. B. the horizontal sum of the consumer benefits of the good should equal the marginal cost of producing the good. C. the marginal benefit of the consumer who values the good most should equal the marginal cost of the good. D. the sum of the marginal benefit of each consumer at a given output equals the marginal cost of the good.
Refer to the graph below.
Which of the shifts explains what would happen to the production possibility curve if a cyclone destroys five major garment factories in the Philippines?
A. I B. II C. III D. IV