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Business, 29.07.2020 16:01 lilcupe738
1. A production possibilities frontier can shift outward if
a. resources are shifted from the production of one good to the production of the other good.
b. the economy abandons inefficient production methods in favor of efficient production methods.
c. government increases the amount of money in the economy.
d. there is a technological improvement.
2. Microeconomics is the study of
a. how government affects the economy.
b. how money affects the economy.
c. how individual households and firms make decisions.
d. how the economy as a whole works.
3. In the circular-flow diagram, which of the following is not a factor of production?
a. capital
b. land
c. money
d. labor
4. The term used to describe a situation in which markets do not allocate resources efficiently is
a. economic meltdown.
b. the effect of the invisible hand.
c. market failure.
d. equilibrium.
5. A rational decision maker takes an action only if the
a. average benefit is greater than the average cost.
b. marginal benefit is less than the marginal cost.
c. marginal benefit is greater than both the average cost and the marginal cost.
d. marginal benefit is greater than the marginal cost.
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Answers: 3
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1. A production possibilities frontier can shift outward if
a. resources are shifted from the produ...
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