If the production possibilities frontier is linear, then
A) opportunity costs are increasing as more of one good is produced.
B) opportunity costs are decreasing as more of one good is produced.
C) opportunity costs are constant as more of one good is produced.
D) it is easy to efficiently produce output.
C
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Where a firm generates beneficial externalities, society would be better off if
A. the firm produced a larger output level. B. the firm reduced its output level. C. a tax was levied on the firm equal to the dollar amount of the externalities. D. price was reduced below marginal private cost.
A quota is
A. a government-imposed restriction on the quantity of a specific good that can be imported. B. a market-imposed balancing factor that keeps prices of imports and exports in equilibrium. C. a law that prevents ecologically damaging goods from being imported into a country. D. a tariff imposed on goods that are dumped in the country.
Which of the following pairs of countries were admitted to the European Union in 2007?
A. Croatia and Kosovo. B. Romania and Bulgaria. C. Switzerland and Hungary. D. Tunisia and Liechtenstein.
Use the following graph to answer the next question.
The short-run equilibrium for this economy is at ________.
A. point e B. point f C. point g D. none of these points