Perfect Competition
Which of the following is the best example of a normative economic statement?
Select one:
a. The unemployment rate for women has been two times lower the overall rate.
b. Increase in competition in the car manufacturing industry will result in price reduction for cars.
c. Monopoly makes a decision based on market prices.
d. A stronger regulation should be applied to polluting companies.
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The correct answer is: A stronger regulation should be applied to polluting companies..
Question 2
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In a graphic relationship, shifts in a curve are caused by a change in:
Select one:
a. the slope of the curve.
b. a factor not measured on the axes of the graph.
c. one of the factors measured on either axes of the graph.
d. any factor, whether measured on the axes of the graph or not.
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The correct answer is: a factor not measured on the axes of the graph..
Question 3
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Exhibit 2–4 Production possibilities curve data | A | B | C | D | E | F | Capital goods | 150 | 140 | 120 | 90 | 50 | 0 | Consumer goods | 0 | 20 | 40 | 60 | 80 | 100 | | | | | | | |
In Exhibit 2–4, the concept of increasing opportunity costs is represented by the fact that:
Select one:
a. the quantity of capital goods produced must be less than 150.
b. the quantity of consumer goods is constant for each change in the quantity of capital goods produced.
c. greater amounts of capital goods must be sacrificed to produce each additional unit of consumer goods.
d. the amount of consumer goods produced must be greater than zero.
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The correct answer is: greater amounts of capital goods must be sacrificed to produce each additional unit of consumer goods..
Question 4
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Question text
Law of increasing opportunity cost states:
Select one:
a. that opportunity cost decreases as production
Select one:
a. The unemployment rate for women has been two times lower the overall rate.
b. Increase in competition in the car manufacturing industry will result in price reduction for cars.
c. Monopoly makes a decision based on market prices.
d. A stronger regulation should be applied to polluting companies.
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The correct answer is: A stronger regulation should be applied to polluting companies..
Question 2
Incorrect
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Question text
In a graphic relationship, shifts in a curve are caused by a change in:
Select one:
a. the slope of the curve.
b. a factor not measured on the axes of the graph.
c. one of the factors measured on either axes of the graph.
d. any factor, whether measured on the axes of the graph or not.
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The correct answer is: a factor not measured on the axes of the graph..
Question 3
Correct
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Question text
Exhibit 2–4 Production possibilities curve data | A | B | C | D | E | F | Capital goods | 150 | 140 | 120 | 90 | 50 | 0 | Consumer goods | 0 | 20 | 40 | 60 | 80 | 100 | | | | | | | |
In Exhibit 2–4, the concept of increasing opportunity costs is represented by the fact that:
Select one:
a. the quantity of capital goods produced must be less than 150.
b. the quantity of consumer goods is constant for each change in the quantity of capital goods produced.
c. greater amounts of capital goods must be sacrificed to produce each additional unit of consumer goods.
d. the amount of consumer goods produced must be greater than zero.
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The correct answer is: greater amounts of capital goods must be sacrificed to produce each additional unit of consumer goods..
Question 4
Correct
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Question text
Law of increasing opportunity cost states:
Select one:
a. that opportunity cost decreases as production