Refer to the above figure. Which of the following would allow society to move to point d?
A) producing efficiently
B) concentrating production in wheat
C) increasing the quantity of labor
D) using the best land to produce wheat and the lower quality land to produce beans
Ques. 2Which one of the following is an example of a normative statement?
A) A digital camera costs more than a disposable camera.
B) Most digital cameras sold in the United States are imported from other countries.
C) A camera makes a good wedding gift.
D) More people will buy digital cameras as their prices decline.
Ques. 3To explain the existence of excess capacity, Keynes argued that
A) prices and wages are flexible, and eventually markets would go back to equilibrium.
B) the long run average cost curve should not occur at the full employment level.
C) the aggregate demand curve can be manipulated by advertising.
D) prices and wages are inflexible in the downward direction.
Ques. 4A supply schedule
A) can be used to generate a supply curve.
B) is a table reflecting the inverse relationship between price and quantity supplied.
C) shows what happens to quantity supplied when price is held constant.
D) all of the above.
Ques. 5There are fewer than half as many publishers of college textbooks in the United States now as a generation ago. Three companies alone account for almost two-thirds of the sale of new textbooks.
This market situation characterized by very few sellers is known as A) an oligopoly.
B) perfect competition.
C) pure monopoly.
D) monopolistic competition.
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