The figure above shows the production possibilities frontier for a country. The opportunity cost of a gallon of milk between combination point A and B is
A) 1/3 of a gallon of ice cream for a gallon of milk.
B) 4 gallons of ice cream for a gallon of milk.
C) 1 gallon of ice cream for a gallon of milk.
D) 3 gallons of ice cream for a gallon of milk.
E) zero because at point A, zero milk is being produced.
A
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The Bureau of Labor Statistics defines a person as unemployed if he or she does not:
a. work full time. b. have a job but is actively seeking one. c. earn a wage above the minimum wage rate. d. earn enough income to be above the poverty level. e. work as much as he or she desires.
Which of the following is required for a monopolist to receive positive economic profits in the long run?
a. Minimal entry barriers b. Exchange of technological know-how with rival firms c. High barriers that block new entry d. Allowing rival firms to produce close substitute products