Cost-reducing technological advancements allow suppliers to earn more profits but have no noticeable effect on the supply curve
a. True
b. False
Indicate whether the statement is true or false
False
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For which of the following medical services is the income elasticity of demand likely to be the smallest?
a. face-lifts b. plastic surgery c. manicures d. emergency services after a car accident e. hair transplants
Under a system of flexible exchange rates, transactions that increase the supply of the nation's currency to the foreign exchange market will cause the nation's
a. currency to depreciate in value. b. currency to appreciate in value. c. trade deficit to increase. d. products to become more expensive to foreigners.
At consumer equilibrium, the marginal utility of one dollar’s worth of any good is equal to ______.
a. one b. the total utility of all other goods combined. c. the marginal utility of one dollar’s worth of any other good d. zero
Exhibit 15-1 Production possibilities curves
In Exhibit 15-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. In Nabia the cost of producing one more unit of wheat is equal to:
A. 4 units of corn. B. 4 units of wheat. C. 1/4 unit of corn. D. 15 units of corn.