A movement from point C to point A in Figure 1.4 results in
A. A reallocation of resources from television production to smartphone production.
B. More efficient production.
C. A reallocation of resources from smartphone production to television production.
D. Permanent unemployment of workers producing plasma televisions.
Answer: A
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Jenny buys sodas and popcorn. Sodas sell for $1 and popcorn sells for $2 a bag. Currently she is in consumer equilibrium, with the marginal utility from her last dollar spent on popcorn equal to 100 units of utility
The marginal utility from her last dollar spent on sodas is A) 20 units of utility. B) 30 units of utility. C) 50 units of utility. D) 100 units of utility.
If uncertainty about banks' health causes depositors to begin to withdraw their funds from banks, the country experiences a(n)
A) banking crisis. B) financial recovery. C) reduction of the adverse selection and moral hazard problems. D) increase in information available to investors.
The monopolistic competitive firm in short-run equilibrium may experience economic profits that are
A) always zero. B) greater than, equal to, or less than zero. C) always positive. D) always negative.
The fewer the substitutes for a good the greater will be the value of the price elasticity of demand coefficient
a. True b. False Indicate whether the statement is true or false