Which of the following is an assumption used when drawing a production possibilities frontier?
i. Human wants and desires are limited to what is available.
ii. Only two goods are considered.
iii. The level of technology is fixed and unchanging.
A) ii only B) i and iii C) i only D) i, ii, and iii E) ii and iii
E
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Total utility is maximized in the consumption of two goods by
A) maximizing expenditure on each good. B) equating the marginal utility for each good consumed. C) equating the total utility of each good divided by its price. D) equating the marginal utility per dollar for each good consumed.
Luis has a factory that he wants to use to make tractors, but the government makes him produce hospital beds. He would like to make 1,000 beds per day, but he is allowed to make only 500 beds. Which of the following countries does Luis most likely live in?
a. Cuba b. France c. Germany d. Australia