Refer to Exhibit 10-5 When TE is $200 billion, what state is the economy in?
A) TE < TP, individuals are buying less output than firms produce.
B) TE > TP, individuals are buying more output than firms produce.
C) TE = TP, the economy is in equilibrium.
D) TE < TP, individuals are buying more output than firms produce.
E) TE > TP, individuals are buying less output than firms produce.
Ans: B) TE > TP, individuals are buying more output than firms produce.
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What is one reason activists might lobby the government for regulation limiting the production of a product to less than would normally be in a perfectly competitive market?
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Profit-maximizing industrialists are concerned with both revenues and costs. Transportation and production costs are an important part of total costs. Both are impacted by
(a) location and power sources. (b) the cost of managing large quantities of productive resources found anywhere along the production chain. (c) the ability to concentrate or group resources in the same place. (d) all of the above.
Consider the production possibilities frontier displayed in the figure shown. If this society chooses to produce 200 bushels of apples it can produce no more than:
A. 20 watermelons.
B. 15 watermelons.
C. 10 watermelons.
D. 5 watermelons.
The American Bar Association administers the bar examinations that prospective lawyers must pass before being allowed to practice law. The exam system thus allows the ABA to act like a
a. monopsony. b. union that can restrict the supply of lawyers. c. union that can increase the number of lawyers. d. None of the above is correct.