Which of the following is an assumption used in deriving a production possibilities curve?
A) Poverty always exists in society.
B) The wages in an industry increase constantly.
C) Prices will continue to increase.
D) The amount of resources is fixed.
Answer: D
Economics
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A variable cost function of the form: VC = 23 + Q + 7Q2 implies a marginal cost curve that is
A) linear. B) downward sloping. C) U-shaped. D) quadratic.
Economics
Assume the demand for coffee increases and the supply of coffee decreases. Which of the following outcomes is certain to occur?
A. The equilibrium quantity of coffee will fall. B. The equilibrium price of coffee will fall. C. The equilibrium price of coffee will rise. D. The equilibrium quantity of coffee will rise.
Economics