When the production possibilities frontier is bowed outwards, the opportunity cost of producing more of one good
A) increases in terms of the amount foregone of the other good.
B) decreases in terms of the amount foregone of the other good.
C) remains constant.
D) cannot be determined.
A
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Which of the following is NOT an example of a way in which microeconomic analysis can help in designing environmental policy?
A) Determining the optimal level of vehicle fuel efficiency standards B) Designing laws to provide incentives for firms to implement clean technologies in new vehicles C) Lobbying consumers and firms to reduce consumption of energy D) Examining the tradeoffs between ecological benefits of environmental legislation and its impacts on consumers' standard of living
Joe the Economist tells his wife, Jane, that he wants to spend a weekend fishing with his friends. She replies, "You don't love me anymore." Just before she hits Joe with a croquet mallet, Joe explains to her that she has confused the concepts of
a. marginal utility and price b. income and price c. marginal utility and total utility d. love and death e. consumer surplus and utility