Econ 101 Final
In the above figure, the total consumer surplus at the efficient level of output is ________. (See picture 13) A) $4.5 million B) $2.5 million C) $9.0 million D) $8.5 million
A) $4.5 million
The above table gives the demand and supply schedules for Blu-ray discs. Based on the table, the equilibrium quantity and price of Blu-ray discs is (See picture 5) A) 20,000 and $20. B) 16,000 and $24. C) 28,000 and $12. D) 16,000 and $16.
A) 20,000 and $20.
If a fall in the price of good A increases the quantity demanded of good B, A) A and B are complements. B) A is a substitute for B, but B is a complement to A. C) B is a substitute for A, but A is a complement to B. D) A and B are substitutes.
A) A and B are complements.
In the figure above, an economy would grow fastest if it produces at point (see picture 3) A) A. B) B. C) C. D) D.
A) A.
Fitness is a magazine for women about health and exercise. Fitness offers year subscriptions for $12 on their website. Jess, Ania, Mandy, and Chloe exercise together and each enjoy reading Fitness. Jess is willing to pay $10, Ania is willing to pay $16, Mandy is willing to pay $24, and Chloe is willing to pay $12 for a subscription to the magazine. Who will subscribe to the magazine? A) Ania, Mandy, and Chloe B) Mandy and Chloe C) Jess, Ania, Mandy, and Chloe D) Jess, Ania, and Chloe
A) Ania, Mandy, and Chloe
The price of a good rises by 12 percent and the price elasticity of demand for the good is 0.85. Which of the following is a correct interpretation of these facts? A) For each 1 percent that the price rose, the quantity demanded decreased by 0.85 percent. B) When the price rises by 12 percent, the quantity demanded decreased by 0.85 percent. C) For each 0.85 percent that the price rose, the quantity demanded decreased by 1 percent. D) For each 1 percent that the price rose, the quantity demanded decreased by 10.2 percent
A) For each 1 percent that the price rose, the quantity demanded decreased by 0.85 percent.
In the figure above, what can be said about point B? (see picture 4) A) It can be reached only after economic growth occurs. B) It represents all resources being devoted to the production of oranges. C) It can be attained only if some resources are left unused. D) It represents all resources being devoted to the production of apples.
A) It can be reached only after economic growth occurs.
Meat at the supermarket has contributed to increase in food prices in 2010, and high feed and fuel prices mean that steak will likely cost a lot more this fall. The price of feed has increased 50 percent and hay has doubled from two years ago. Based on this information, which of the following is NOT true in the market for beef? A) The equilibrium quantity will increase. B) The consumer surplus will decrease. C) The equilibrium price will increase. D) The total surplus will decrease.
A) The equilibrium quantity will increase.
Which of the following decreases the supply of restaurant meals? A) Waiters get a pay raise. B) The price of movies, a complement to restaurant meals, falls. C) Consumers' incomes decrease and restaurant meals are a normal good. D) Consumers' incomes increase and restaurant meals are a normal good
A) Waiters get a pay raise.
Which of the following makes demand less elastic? A) a short time elapsing since the product's price changed B) the existence of many close substitutes for the good C) spending a large proportion of income on the good D) All of the above answers are correct.
A) a short time elapsing since the product's price changed
When an economy produces at its allocatively efficient production point, A) a society can increase the production of one good only by decreasing the production of some other good that is valued more highly. B) scarcity is not a problem. C) a society can increase the production of all goods. D) resources are not limited.
A) a society can increase the production of one good only by decreasing the production of some other good that is valued more highly.
The drought in the Midwest over the summer has decreased the supply of corn and, as a result, brought a sharp increase in the price of corn. (Source: The Economist, August 4, 2012) The increase in the price of corn A) always decreases consumer surplus. B) does not affect consumer surplus because this change reflects only a movement along the demand curve. C) increases consumer surplus if demand is elastic and decreases consumer surplus if demand is inelastic. D) always increases consumer surplus.
A) always decreases consumer surplus.
On a straight-line downward-sloping demand curve, the maximum elasticity of demand occurs A) at its vertical intercept. B) where it intersects the supply curve. C) at its horizontal intercept. D) at its midpoint.
A) at its vertical intercept.
In economics, the term "capital" refers to A) buildings and equipment. B) the money in one's pocket. C) mineral resources. D) consumer goods.
A) buildings and equipment.
Of the following items, which has the most inelastic demand? A) food B) fruit C) Gala apples D) apples
A) food
A society that is producing on its production possibilities frontier is A) fully utilizing all of its productive resources. B) producing too much output. C) not utilizing all of its resources. D) not being technologically efficient.
A) fully utilizing all of its productive resources.
Because of increasing marginal cost, most supply curves A) have a positive slope. B) are horizontal. C) have a negative slope. D) are vertical.
A) have a positive slope.
If your annual income rose by 10 percent and you increased your purchases of shoes from 2 pairs to 3 pairs each year, then your demand for shoes is A) income elastic. B) income inelastic. C) income inelastic and equal to 0.50. D) income elastic and equal to 1.50.
A) income elastic.
A computer software program is most strongly an example of A) intellectual property. B) real property. C) vicarious property. D) fiat property.
A) intellectual property.
A natural resource, such as fishing territories, is considered an example of A) land only. B) only capital. C) land, labor, capital and entrepreneurship. D) both land and labor.
A) land only.
An increase in the cost of producing video tape shifts the supply curve of video tape ________ and shifts the demand curve for video tape ________. A) leftward; not at all B) not at all; leftward C) rightward; leftward D) leftward; leftward
A) leftward; not at all
A straight-line demand curve with negative slope intersects the horizontal axis at 200 tons per week. The point on the demand curve at which the price elasticity of demand is 1 corresponds to a quantity demanded A) of 100 tons. B) of 0 tons. C) of 200 tons. D) that would be negative if a negative quantity demanded were possible.
A) of 100 tons.
Suppose that a typical German factory can produce 20 cameras or 1 computer in an hour, and that a typical American factory can produce 10 cameras or one computer in an hour. If Germany produces one less computer and switches resources to cameras, and the United States produces one more computer and takes resources out of cameras, then the net change in camera production in both countries taken together is A) plus 10 cameras. B) plus 20 cameras. C) 0. D) minus 10 cameras.
A) plus 10 cameras.
Producer surplus is the difference between the A) price and the marginal cost of producing the good summed over the quantity sold. B) marginal benefit of consuming the good and the marginal cost of producing the good summed over the quantity sold. C) price and the willingness to pay for the good. D) willingness to pay for the good and the marginal cost of producing the good summed over the quantity sold
A) price and the marginal cost of producing the good summed over the quantity sold.
Producer surplus is the A) price of a good minus the marginal cost of producing it summed over the quantity sold. B) cost of the good summed over the quantity sold. C) demand for a good minus the supply summed over the quantity sold. D) marginal cost of producing it summed over the quantity sold.
A) price of a good minus the marginal cost of producing it summed over the quantity sold.
Economics is best defined as the science of choice and how people cope with A) scarcity. B) different economic systems. C) differences in needs. D) differences in wants.
A) scarcity.
In the above figure, in order for the equilibrium price to remain constant while the equilibrium quantity increases, the (See picture 7) A) supply and demand curves both would have to shift rightward. B) supply curve would have to shift rightward and the demand curve would have to shift leftward. C) supply curve would have to shift leftward and the demand curve would have to shift rightward. D) supply and demand curves both would have to shift leftward.
A) supply and demand curves both would have to shift rightward.
Comparative advantage is A) the ability to perform an activity at a lower opportunity cost than anyone else. B) another name for absolute advantage. C) the ability to perform an activity at a higher opportunity cost than anyone else. D) the ability to perform an activity at a zero opportunity cost.
A) the ability to perform an activity at a lower opportunity cost than anyone else.
A negative value for the cross elasticity of demand between two goods indicates that A) the goods are complements. B) one of the goods is normal and the other is inferior. C) each good is price inelastic. D) the goods are substitutes.
A) the goods are complements.
The "law of demand" states that, other thing remaining the same, the higher A) the price of a good, the smaller is the quantity demanded. B) the price of a good, the higher is the quantity demanded. C) consumers' incomes, the greater is the demand. D) the price of a good, the lower is the demand for this good.
A) the price of a good, the smaller is the quantity demanded.
When an economist talks of scarcity, the economist is referring to the A) inability of society to satisfy all human wants because of limited resources. B) ability of society to continually make technological breakthroughs and increase production. C) ability of society to employ all of its resources. D) ability of society to consume all that it produces
A.) inability of society to satisfy all human wants because of limited resources.
In the figure above, when the market is in equilibrium, total consumer surplus on all the CDs bought will be (See picture 14) A) less than $15 million. B) $20 million. C) greater than $30 million. D) less than at any other price.
B) $20 million.
In the table above, if there are 80 umbrellas produced, the deadweight loss from the 80th umbrella is (See picture 12) A) $40. B) $20. C) $30. D) $10.
B) $20.
If the price of gasoline fell from $2.95 to $2.85 per gallon, your expenditure on gasoline would increase if your price elasticity of demand for gasoline equals A) 0.9. B) 1.1. C) 1.0. D) Total revenue would increase at all of the above elasticities.
B) 1.1.
The increase in the demand for widgets, shown in the figure above, is the result of an increase in the price of McBoover devices from $9 to $11. Therefore, the cross-price elasticity for these two products is (See picture 9) A) 0.5. B) 2.0. C) -2.0. D) -0.5
B) 2.0.
The table shows the demand and supply schedules for jeans. (See picture 6) A) At $60 a pair, there is a surplus of jeans and the price will rise. B) At $40 a pair, there is a shortage of jeans and the price will rise. C) At $40 a pair, there is a shortage of jeans and the price will fall. D) At $60 a pair, there is a shortage of jeans and the price will fall
B) At $40 a pair, there is a shortage of jeans and the price will rise.
Which of the following best defines capital as a factor of production? A) Financial assets used by businesses. B) Instruments, machines, and buildings used in production. C) The gifts of nature that businesses use to produce goods and services. D) The knowledge and skills that people obtain from education and use in production of goods and services
B) Instruments, machines, and buildings used in production.
Which of the following is a normative statement? A) Owners of apartment buildings are free to charge whatever rent they want. B) Low rents are good because they make apartments more affordable. C) Low rents will restrict the supply of housing. D) Housing costs are rising.
B) Low rents are good because they make apartments more affordable.
Utilitarianism argues that: A) The competitive market is fair. B) Only equality brings efficiency. C) The result is fair if the rules are fair. D) There is a tradeoff between equality and efficiency.
B) Only equality brings efficiency.
The marginal benefit is the A) additional gain from one more unit of an activity minus the additional cost from one more unit of the activity. B) additional gain from one more unit of an activity. C) loss of the highest-valued alternative. D) additional cost from one more unit of an activity
B) additional gain from one more unit of an activity.
Economic growth can be represented by A) a movement up the production possibilities frontier (PPF). B) an outward shift of the production possibilities frontier (PPF). C) an inward shift of the production possibilities frontier (PPF). D) a movement down the production possibilities frontier (PPF)
B) an outward shift of the production possibilities frontier (PPF).
Marginal benefit is the A) dollars sacrificed to purchase a good or service. B) benefit that a person receives from consuming one more unit of a good or service. C) amount of one good or service that a person gains when another good or service is consumed. D) minimum amount a person is willing to pay for one more unit of a good or service.
B) benefit that a person receives from consuming one more unit of a good or service.
The interaction of supply and demand explains A) neither the prices nor the quantities of goods and services. B) both the prices and the quantities of goods and services. C) the prices of goods and services but not their quantities. D) the quantities of goods and services but not their prices.
B) both the prices and the quantities of goods and services.
Adam Smith argued that each person in a competitive market is led to promote the A) inefficient use of society's resources, because it is no person's intention to make society better off. B) efficient use of society's resources, even though it is no person's intention to make society better off. C) inefficient use of society's resources, even though each person's intention is to make society better off. D) efficient use of society's resources, because each person's intention is to make society better off.
B) efficient use of society's resources, even though it is no person's intention to make society better off.
Often people trying to withdraw money from their bank must wait in line, which reflects a ________ allocation method. A) market price B) first-come, first-served C) command D) contest
B) first-come, first-served
Macroeconomics differs from microeconomics in that: A) macroeconomics studies the decisions of individuals. B) macroeconomics focuses on the national economy and the global economy. C) macroeconomics studies the behavior of government while microeconomics looks at private corporations. D) microeconomics looks at the economy as a whole.
B) macroeconomics focuses on the national economy and the global economy.
The study of the choices made by individuals is part of the definition of A) positive economics. B) microeconomics. C) macroeconomics. D) normative economics.
B) microeconomics.
The demand for ________ is more elastic than the demand for ________. A) gasoline; professional services B) motor vehicles; food C) chewing gum; cars D) all soft beverages; lemonade
B) motor vehicles; food
When the production possibilities frontier bows outward from the origin, A) some of society's resources are unemployed. B) opportunity costs are increasing. C) opportunity costs are decreasing. D) opportunity costs are constant.
B) opportunity costs are increasing.
Producer surplus is the ________ summed over the quantity sold. A) value of a good minus the price received for it B) price received for a good minus its marginal cost C) marginal cost of making a good minus the price received for it D) price received for a good minus the value of the good
B) price received for a good minus its marginal cost
The market demand curve is constructed by adding the A) prices that each individual is willing to pay at each quantity. B) quantities demanded by each individual at each price. C) Neither answer A nor answer B is correct. D) Both answer A and answer B are correct.
B) quantities demanded by each individual at each price.
The price of jet fuel falls. This fall shifts the A) demand curve for airplane trips rightward. B) supply curve of airplane trips rightward. C) supply curve of airplane trips leftward. D) demand curve for airplane trips leftward.
B) supply curve of airplane trips rightward.
The opportunity cost of attending college includes the cost of A) tuition, books, and the lost wages for the hours spent studying. B) the highest valued alternative to attending college plus the cost of tuition. C) the highest valued alternative to attending college. D) the tuition but not the job at which you would otherwise have worked
B) the highest valued alternative to attending college plus the cost of tuition.
When a nation has a comparative advantage in the production of a particular good, A) the opportunity cost of producing that good is higher than that of other goods. B) the nation can gain from trade. C) the comparative advantage encourages self-sufficiency. D) the nation tends to avoid specialization.
B) the nation can gain from trade.
In the above figure, when the price of pretzels is $3.00 per pound, the total producer surplus from all the pretzels will be (See picture 11) A) less than at any other price. B) the sum of the difference between $3.00 and the marginal cost of all the pounds produced. C) zero. D) greater than at any other price.
B) the sum of the difference between $3.00 and the marginal cost of all the pounds produced.
The problem of "scarcity" applies A) only in underdeveloped countries because there are few productive resources in these countries. B) to all economic systems, regardless of their level of development. C) only in industrially developed countries because resources are scarce in these countries. D) only in economic systems that are just beginning to develop because specialized resources are scarce
B) to all economic systems, regardless of their level of development.
When a country decides to produce fewer bombers and more public housing projects, it is answering the ________ part of one of the two big economic questions. A) "for whom" B) "how" C) "what" D) "defense"
C) "what"
Suppose that the quantity of pizza demanded decreased by 15 percent after an increase in price of 10 percent. What is the price elasticity of demand for pizza? A) -1.50. B) -0.67. C) 1.50. D) 0.67.
C) 1.50.
Suppose that in an hour Joe can prepare 10 sandwiches or 5 pizzas. The opportunity cost of Joe producing one sandwich is A) 5 pizzas. B) 1 pizza. C) 1/2 pizza. D) 2 pizzas
C) 1/2 pizza.
The above table shows production points on Sweet-Tooth Land's production possibilities frontier. Which of the following is an example of a point that is inefficient? (See picture 1) A) 32 chocolate bars and 40 cans of cola B) 0 chocolate bars and 100 cans of cola C) 38 chocolate bars and 0 cans of cola D) 20 chocolate bars and 80 cans of cola
C) 38 chocolate bars and 0 cans of cola
Which of the following statements is correct? A) The United States produces more goods than services. B) The percentage of people producing goods in the United States has steadily increased over the last 60 years. C) The United States produces more services than goods. D) The United States produces an equal amount of goods and services
C) The United States produces more services than goods.
"Government should act to reduce poverty levels." A) This statement is a positive statement. B) This statement is an example of the fallacy of composition. C) This statement is a normative statement. D) This statement is an example of the post hoc fallacy.
C) This statement is a normative statement.
An economic model is A) a statement that describes how the world should be. B) a collection of facts that describe the real world. C) a description of some aspect of the economic world that includes only those features of the world that are needed for the purpose at hand. D) a generalization that summarizes all the normative assumptions we make about a particular issue.
C) a description of some aspect of the economic world that includes only those features of the world that are needed for the purpose at hand.
Jeep Cherokees are a normal good. If people's incomes increase, the direct result will be A) a decrease in the demand for the vehicles. B) an increase in the supply of the vehicles. C) an increase in the demand for the vehicles. D) Both answers A and C are correct.
C) an increase in the demand for the vehicles.
When the price of an inferior good falls, the substitution effect leads to ________ in the quantity purchased and the income effect leads to ________ in the quantity purchased. A) an increase; an increase B) a decrease; an increase C) an increase; a decrease D) a decrease; a decrease
C) an increase; a decrease
Because we face scarcity, every choice involves A) giving up something for nothing. B) money. C) an opportunity cost. D) the question "what."
C) an opportunity cost.
Competitive markets with no external costs or benefits and no government price ceilings, floors, taxes or subsidies ________ efficient. According to the "It's not fair if the rules aren't fair" idea of fairness, competitive markets ________ fair. A) are not; are not B) are not; are C) are; are D) are; are not
C) are; are
If the money price of hats rises and no other prices change, the I. relative price of a hat rises. II. opportunity cost of a hat rises. A) only II B) only I C) both I and II D) neither I nor II
C) both I and II
The market demand curve A) shows the value of a good that consumers must give up to get another unit of a different good. B) by itself determines equilibrium prices. C) can also be the marginal social benefit curve. D) can also be the marginal social cost curve.
C) can also be the marginal social benefit curve.
The supplier of your ________ is most likely a monopoly. A) shoes B) toothpaste C) home electricity D) textbooks
C) home electricity
Starting at the top of a straight-line downward sloping demand curve, as the price falls, total expenditures will A) initially decrease and then increase. B) decrease along the entire demand curve. C) initially increase and then decrease. D) increase along the entire demand curve
C) initially increase and then decrease.
The above figure shows Dana's marginal benefit curve for ice cream. If the price of ice cream is $2 per gallon, then Dana's consumer surplus from the 4th gallon (See picture 15) A) is less than her consumer surplus from the 8th gallon. B) could be greater than, equal to, or less than the consumer surplus from the 8th gallon. C) is greater than her consumer surplus from the 8th gallon. D) is the same as her consumer surplus from the 8th gallon.
C) is greater than her consumer surplus from the 8th gallon.
If the marginal benefit from another computer exceeds the marginal cost of the computer, then to use resources allocatively efficiently, A) fewer resources should be used to produce computers. B) if the marginal benefit exceeds the marginal cost by as much as possible, the efficient amount of resources are being used to produce computers. C) more resources should be used to produce computers. D) None of the above is correct because marginal benefit and marginal cost have nothing to do with using resources allocatively efficiently.
C) more resources should be used to produce computers.
When the government chooses to use resources to build a dam, these sources are no longer available to build a highway. This choice illustrates the concept of A) macroeconomics. B) a market mechanism. C) opportunity cost. D) a fallacy of composition
C) opportunity cost.
A determinant of the price elasticity of supply is the extent to which A) the good has many consumer substitutes. B) consumers like the quality of the good. C) production of the good uses commonly available resources. D) the demand for the good is relatively elastic.
C) production of the good uses commonly available resources.
A normal good is defined as a good for which the demand curve A) is perfectly price elastic. B) slopes downward to the right. C) shifts rightward as income increases. D) shifts leftward as income increases.
C) shifts rightward as income increases.
If a shift in the demand curve that raises the price of oranges from $7 to $9 a bushel increases the quantity of oranges supplied from 4,000 bushels to 6,000 bushels, the A) supply of oranges is inelastic. B) demand for oranges is elastic. C) supply of oranges is elastic. D) demand for oranges is inelastic.
C) supply of oranges is elastic.
If the price is above the equilibrium price, then there is a A) shortage, and market forces will operate to lower price. B) shortage, and market forces will operate to raise price. C) surplus, and market forces will operate to lower price. D) surplus, and market forces will operate to raise price.
C) surplus, and market forces will operate to lower price.
The statement that ________ is a positive statement. A) too many people in the United States have no health care insurance B) more students should study economics C) the price of sugar in the United States is higher than the price in Australia D) the price of gasoline is too high
C) the price of sugar in the United States is higher than the price in Australia
The figure illustrates the demand for hamburgers. When the price is $1.00 a hamburger, the elasticity of demand is ________ and a 1 percent increase in the price will ________ the quantity of hamburgers demanded by ________ percent. (see picture 10) A) 2.50; increase; 2.50 B) 5.00; decrease; 5.00 C) 1.00; decrease; 0.40 D) 0.40; decrease; 0.40
D) 0.40; decrease; 0.40
The money price of a pizza is $12 per pizza and the money price of a taco is $2 per taco. The relative price of a pizza is A) $24 per pizza. B) 1/6 pizza per taco. C) $12 per pizza. D) 6 tacos per pizza.
D) 6 tacos per pizza.
The above figures show the market for hamburger meat. Which figure shows the effect when more farmers decide to raise cows that are processed into hamburger meat? (See picture 8) A) Figure A B) Figure B C) Figure C D) Figure D
D) Figure D
A cost due to an increase in activity is called A) an incentive loss. B) a negative marginal benefit. C) the total cost. D) a marginal cost.
D) a marginal cost.
In markets, people's decisions are coordinated by A) changes in property rights. B) specialization according to absolute advantage. C) learning-by-doing. D) adjustments in prices.
D) adjustments in prices.
In 2011, the price of peanuts was rising, which lead peanut butter buyers to expect the price of peanut butter would rise in the future. Consequently, in the current market for peanut butter there was ________ which resulted in ________ in the price of peanut butter and ________ in the quantity of peanut butter. A) a decrease in demand for peanut butter; a decrease; a decrease B) an increase in supply of peanut butter; a decrease; an increase C) a decrease in supply of peanut butter; an increase; a decrease D) an increase in demand for peanut butter; an increase; an increase
D) an increase in demand for peanut butter; an increase; an increase
Positive economic statements A) are related only to microeconomics. B) cannot be tested against the facts. C) prescribe what should be. D) can be tested against the facts
D) can be tested against the facts
An efficient allocation of resources occurs when we A) cannot produce more of a good or service without giving up some other good or service that we need. B) produce the goods and services that people need. C) produce the goods and services that people want. D) cannot produce more of a good or service without giving up some other good or service that we value more highly
D) cannot produce more of a good or service without giving up some other good or service that we value more highly
The taxicab fare in Newville is regulated. The fare currently charged is $6 a ride. Newville taxicab drivers want to obtain government's permission to lower the fare, which they think will increase their total revenue. From this we can conclude that the drivers believe that the demand for taxicab rides is A) unit elastic. B) inelastic. C) perfectly inelastic. D) elastic.
D) elastic.
If a good is produced using inputs for which there are no substitutes, the good's A) elasticity of demand will be large. B) elasticity of supply is likely to be large. C) elasticity of demand will be small. D) elasticity of supply is likely to be small.
D) elasticity of supply is likely to be small.
A factor market is a market in which A) firms sell goods and services. B) households buy goods and services. C) firms sell the services of the factors of production. D) households sell the services of the factors of production they control.
D) households sell the services of the factors of production they control.
If demand is inelastic, an increase in the price will A) decrease total revenue. B) increase the quantity demanded. C) not change total revenue. D) increase total revenue.
D) increase total revenue.
Suppose the marginal cost of producing a good falls so that the marginal social cost curve shifts downward. Then the efficient quantity to produce of that product A) could increase, stay the same, or decrease. B) decreases. C) does not change. D) increases.
D) increases.
If both the demand and supply increase, the equilibrium quantity ________ and the equilibrium price ________. A) decreases; rises B) increases; falls C) decreases; might rise, fall, or not change D) increases; might rise, fall, or not change
D) increases; might rise, fall, or not change
If the money price of wheat increases and no other prices change, the A) relative price of wheat falls. B) relative price of wheat is unaffected. C) demand for wheat increases. D) opportunity cost of wheat rises.
D) opportunity cost of wheat rises.
In the figure above, point D is (see picture 2) A) production efficient and point B is not production efficient. B) less production efficient than point C. C) not production efficient and point B is production efficient. D) production efficient and point A is not production efficient.
D) production efficient and point A is not production efficient.
The rights of an owner to use and exchange property are A) money rights. B) capitalist rights. C) socialist rights. D) property rights
D) property rights
The opportunity cost of good A in terms of good B is equal to the A) money price of good A minus the money price of good B. B) money price of good B minus the money price of good A. C) ratio of the money price of good B to the money price of good A. D) ratio of the money price of good A to the money price of good B.
D) ratio of the money price of good A to the money price of good B.
The production possibilities frontier itself shows A) the maximum rate of growth of output possible for an economy. B) the maximum amount of resources available at any given time. C) combinations of goods and services that do not fully use available resources. D) the maximum levels of production that can be attained.
D) the maximum levels of production that can be attained.
The principle that states that we should strive to achieve the greatest happiness for the greatest number is called A) the symmetry principle. B) efficiency. C) the big tradeoff. D) utilitarianism
D) utilitarianism
Scarcity guarantees that A) demands will be equal to wants. B) demands will exceed wants. C) most demands will be satisfied. D) wants will exceed demands
D) wants will exceed demands
