A bowed-outward production possibilities curve demonstrates the concept of
A) constant opportunity costs as production shifts from the production of one good to the production of the other good.
B) decreasing opportunity costs as production shifts from the production of one good to the production of the other good.
C) increasing opportunity costs as production shifts from the production of one good to the production of the other good.
D) increasing opportunity costs at first but the opportunity costs steadily decrease as you move down along the curve.
Ques. 2Which of the following statements is most accurate regarding who benefits and loses from establishment of a minimum wage above the market clearing wage?
A) Individuals who obtain jobs benefit because they earn a higher wage, but some individuals lose because employers will not hire them at the minimum wage.
B) All workers benefit equally from the establishment of the minimum wage because just as many workers as before remain employed, and all earn the higher minimum wage.
C) All employers benefit equally from the establishment of the minimum wage because they are able to hire fewer workers at a lower wage.
D) All employers lose because they must pay the higher minimum wage to the same number of employees as they did before the minimum wage was established.
Ques. 3Positive economic analysis is said to be
A) true.
B) right.
C) value-laden.
D) objective.
Ques. 4Joe's hotdog stand merges with a company that supplies the condiments to Joe's. This is an example of
A) conglomerate merger.
B) concentration ratio.
C) vertical merger.
D) horizontal merger.
Ques. 5The law of supply implies that the supply curve is
A) flat.
B) upward sloping.
C) downward sloping.
D) vertical.
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