When a firm or economy is operating efficiently, it is operating
A. outside its production possibilities frontier.
B. inside its production possibilities frontier.
C. on its production possibilities frontier.
D. at the intersection of the production possibilities frontier and the vertical axis.
E. at the intersection of the production possibilities frontier and the horizontal axis.
Answer: C
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In a market, at the equilibrium price
A) neither buyers nor sellers can do business at a better price. B) buyers are willing to pay a higher price, but sellers do not ask for a higher price. C) buyers are paying the minimum price they are willing to pay for any amount of output and sellers are charging the maximum price they are willing to charge for any amount of production. D) None of the above is true.
Which of the following would not cause a shift in the supply curve for a good?
a. An increase in demand for that good. b. An increase in the cost of labor used to produce that good. c. A change in the cost of raw materials used to produce that good. d. A decrease in the cost of machinery used to produce that good.