The production possibilities frontier shows:
a. possible combinations of two types of goods that can be produced when all available resources are fully and efficiently employed.
b. possible combinations of two types of resources that can be used to produce a given combination of two goods.
c. possible quantity of a good that will be consumed at various possible prices.
d. possible quantity of a good that will be supplied at various possible prices.
a
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What is the difference between "capital" and "financial capital"? Which is a factor of production?
What will be an ideal response?
The above figure shows the market for DVDs. The government decides that all citizens deserve to watch affordable DVDs so a price ceiling of $12 per DVD is placed on DVDs. After this price ceiling is in effect, producer surplus equals ________
A) $900,000 B) $400,000 C) $200,000 D) $100,000 E) $1,800,000