What can cause a production possibilities curve to move to the right?
a) Thousands of people move out of the country
b) A new invention lowers the cost of production
c) An epidemic kills thousands of young men and women
d) The population is growing increasingly old
Ans: b) A new invention lowers the cost of production
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A quantity less than the equilibrium quantity in a competitive market is inefficient because
A) the marginal benefit of another unit is greater than its marginal cost. B) too much of the good is being produced. C) the marginal cost of another unit is greater than its marginal benefit. D) the marginal benefit of another unit is not equal to zero. E) the marginal benefit is not maximized.
If you left $2,500 on deposit with a bank promising to pay you a 6 percent compound annual rate of interest, then after 50 years your deposit would be worth approximately:
A. $46,050 B. $18,420 C. $250,750 D. $2,800