When constructing a production possibilities frontier, which of the following assumptions is not made?
a. The economy produces only two goods or two types of goods.
b. Firms produce goods using factors of production.
c. The technology available to firms is given.
d. The quantities of the factors of production that are available are increasing over the relevant time period.
Ans: d. The quantities of the factors of production that are available are increasing over the relevant time period.
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What is an advantage of a command economy?
a. basic services such as healthcare can be provided to all citizens b. innovation and new ideas result in great wealth for entrepreneurs c. starvation is impossible d. the production of consumer goods is a top economic priority
Assuming that workers are fully aware of their working conditions, which of the following will not happen when the government mandates pollution control to protect workers' health?
A. Wages will fall at all but the cleanest firms. B. Firms with low profits before the mandate may shut down or exit the industry. C. The air in workplaces will become cleaner. D. Employment will likely decrease. E. Worker utility will increase.