The above figure shows the production possibility frontier for an economy. The point or points that are attainable and production efficient are

By selecting a bundle where MRS = MRT, the consumer is saying

A) "I value my last unit of each good equally." B) "I am willing to trade one good for the other at the same rate that I am required to do so." C) "I will equate the amounts spent on all goods consumed." D) All of the above.

Suppose that in a market for used cars, there are good used cars and bad used cars (lemons). Consumers are willing to pay as much as $6,000 for a good used car but only $1,000 for a lemon. Sellers of good used cars value their cars at $5,000 each and

sellers of lemons value their cars at $800 each. Buyers cannot tell if a used car is reliable or is a lemon. Based on this information, what is the likely outcome in the market for used cars? A) Both good used cars and lemons will sell for $4,500 each. B) Only lemons will sell, for $800 each. C) Both good used cars and lemons will sell for $1,000 each. D) Most used cars offered for sale will be lemons.