Figure 2-9
Which of the following statements could explain the concave shape of the production possibilities curve in ?
a.
The publishing industry develops improved printing presses.
b.
Productive efficiency increases as the publishing industry moves from point F to point H
c.
More editors and writers are employed as the publishing industry moves from point F to point H.
d.
Some writers are better suited to writing novels; some are better suited to writing textbooks.
e.
The prices of paper and ink fall as the publishing industry moves from point H to point F.
d
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In the 1960s, banks started issuing negotiable CDs in order to
A) offer higher interest rates than they were allowed to on deposits. B) lower information costs. C) appeal more to the small borrower. D) lend in the direct finance market.
State and local sales taxes are typically progressive
a. True b. False Indicate whether the statement is true or false
The law of diminishing marginal utility means that: a. marginal utility is maximized when consumers get the same amount of total utility from every good they consume. b. total utility is maximized when consumers get the same amount of marginal utility from the last unit of every good they consume. c. beyond some point, added units of a product provide lower and lower amounts of marginal
utility. d. a consumer would get less utility from the last unit of a good consumed when that good costs $3 than when it costs $1.
Mutually beneficial trade is impossible when different persons have different preferences about goods and services
a. True b. False Indicate whether the statement is true or false