Technological advance is shown as a(n):

A. movement from a point inside a production possibilities curve to a point on the curve.
B. movement along a production possibilities curve.
C. outward shift of a production possibilities curve.
D. inward shift of a production possibilities curve.

Answer: C

Economics

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Suppose the equilibrium price in a competitive price-taker market is $10 and a firm in the industry charges $9 . Which of the following is true?

a. The firm will not be able to sell any output. b. The firm will sell less output than its competitors. c. The firm will make more profit than it could at the $10 price. d. The firm will make less profit than it could at the $10 price.

Economics

Answer the following statements true (T) or false (F)

1. The consumer will select that point on the budget line which puts the consumer on the highest attainable indifference curve. 2. A consumer maximizes total utility when she or he purchases the combination of the two products at which her or his budget line is tangent to an indifference curve. 3. An increase in the price of a product normally enables a consumer to reach a higher indifference curve. 4. It is possible that as a result of the budget line shifting outwards, the consumer will buy less of a product.

Economics