Macroeconomics (MindTap Course List)
10th Edition
ISBN: 9781285859477
Author: William Boyes, Michael Melvin
Publisher: Cengage Learning
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Chapter 2, Problem 9E
To determine
The correct answer from the given options that states the
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Check out a sample textbook solutionStudents have asked these similar questions
The law of increasing opportunity costs indicates that the opportunity cost of producing a good:
a. increases as more of the good is produced.
b. decreases as more of the good is produced.
c. is proportional to the production of the good.
d. is constant to the production of the good.
Scarcity is a condition that exists when
A. there is a fixed supply of resources relative to the demand for the product.
B. there is a large demand for the product.
C. resources are not able to meet the entire demand for a product.
D. All of the above.
production possibilities frontier can shift outward if
Select one:
a.
government increases the amount of money in the economy.
b.
there is a technological improvement.
c.
the economy abandons inefficient production methods in favour of efficient production methods.
d.
resources are shifted from the production of one good to the production of the other good.
Chapter 2 Solutions
Macroeconomics (MindTap Course List)
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Similar questions
- part D E F needed Consider Points A, B, C, D, E, F and G. a. Which points are inefficient? Explain why. b. Which points are efficient? Explain why. c. Which point(s) are infeasible. Explain why. d. In moving from Point A to Point B, and Point B to Point C, in which case is the opportunity cost of producing bread higher? Explain why. e. How would the PPF look different if there were constant opportunity costs of bread for wine (explain in words only)? f. Describe (in words only) how the invention of a new, more productive strain of wheat would be modeled in the above diagram.arrow_forward__________ is the value of the next best alternative that is being given up. a. Production cost b. Real cost c. Opportunity cost d. Money costarrow_forwardIn deciding to produce a given good, an individual would always choose A. The process that uses the most capital goods B. The most productive process available C. The shortest and most productive process available D. The shortest process availablearrow_forward
- Suppose there is a 6 percent increase in the price of good X and a resulting 6 percent decrease in the quantity of X demanded. Price elasticity of demand for X is А. 36 C. 6. D. B.arrow_forwardQuestions for Review 4. Define scarcity . 5. Generally economists divide resources into four broad categories explain . 6. What is competition ? And what form it takes ? 7. What is opportunity cost ? 8. Define marginal costs & Marginal benefits . 9. Compare between Macroeconomics & Macroeconomics 10. Micro economists & macro economists ask different questions . Explain ?arrow_forwardYou bought a laptop at $3000 last year, its resale value now is $2000. It will cost $3500 to buy a new laptop. The opportunity cost of keeping your laptop is: a. $3500 b. $3000 c. $2000 d. $1500arrow_forward
- 10. The production possibilities curve will never move outwards. True False 11. Government controls all market activity in the United States. True False 12. What does the law of demand state? A. As the price increases, quantity demanded remains constant. B. As the price increases, quantity demanded increases. C. As the price decreases, quantity demanded decreases. D. As the price increases, quantity demanded decreases. 13. Microeconomics is the study of which of the following? Individual economic units Banks and the U.S. government Money and money markets Foreign exchange marketsarrow_forwardProduction Possibilities Frontier Step 1: Draw the Y and X axes and number the units. Step 2: Label the Y and X axes and title the graph. Step 3: Plot the production combinations. Step 4: Draw the curve. Step 5: Note the opportunity cost of each variable in terms of the other.arrow_forwardThe value of the next best alternative that had to be given up to do the action that was chosen is the a. sale price. b. trade-off. C. opportunity cost. d. capital.arrow_forward
- Economics is concerned with A. All the given answers B. the effects of changes in opurtunity cost on decisions C. the competition that scarcity makes necessary D. the choices people must make because resources are scarcearrow_forwardThe word economics is closely associated with the word a. free b. all of the above c. plenty d. scarce e. unlimitedarrow_forwardThe opportunity cost to you of an action is A. how much you must pay for the opportunity to take the action.B. the value to you of the next best action you could have taken.C. the dollar cost to you of the action.D. the cost to society of giving you the opportunity to take the action.arrow_forward
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