Imagine that a country is at point X of this production possibilities frontier and a country is at point Y.
A. The country at point X will probably grow faster than the country at point Y.
B. The country at point Y will probably grow faster than the country at point X.
C. The two countries will probably grow at about the same speed.
D. There is no way of predicting which country will grow faster.
B. The country at point Y will probably grow faster than the country at point X.
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A firm maximizes its profit by producing the amount of output such that
A) marginal revenue equals marginal cost. B) marginal revenue exceeds marginal cost by some amount. C) marginal revenue is maximized. D) marginal cost is minimized. E) marginal revenue exceeds marginal cost by the maximum amount possible.
A critical assumption differs from a simplifying assumption in that a critical assumption
a. is a means of getting rid of extraneous details in the model b. cannot affect the conclusions of the model c. can affect the conclusions of the model d. is rarely used in economic models e. is never a fundamental assumption