What is the difference between a production possibilities curve and a consumption possibilities curve?
What will be an ideal response?
A production possibilities curve shows the possible combinations of two products that can be produced in an economy. A consumption possibilities curve shows the possible combinations of two products that can be consumed when a nation specializes and trades with another nation.
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Comparing changes in relative prices is more useful than examining average prices in
A. Deflating nominal income. B. Determining the redistribution of income. C. Determining if there is deflation. D. Determining the inflation rate.
Refer to the information provided in Figure 13.9 below to answer the question(s) that follow. 
Figure 13.9 Refer to Figure 13.9. If Ohio Edison is regulated to act as a perfectly competitive firm (instead of the monopoly level),
A. the net social gain to society equals ACF. B. output would increase from 500 to 600 units. C. the firm will earn profits of BEC. D. consumer surplus would increase by the area FGBC.