38)The fact that the PPF usually bows away from the origin implies that....
a) as the production of any good increases, there is an increase in the opportunity cost of producing it.
b) as the production of any good increases, there is a decrease in the opportunity cost of producing it.
o) getting more of one good means getting less of another good.
d) getting more of one good means getting more of another good.
e) resources are perfectly fungible, easily moved between alternative uses to satisfy consumer demand.
36)
What are the two distinguishing characteristics of a public good?
a) It is provided by the core sphere; it is freely available to anyone.
b) It is provided by the public purpose sphere; it is freely available to anyone,
c) It is freely available to anyone; use by one person diminishes the ability of another person to use it.
d) It is freely available to anyone; use by one person does not diminish the ability of another person to use it.
e) It is provided at low cost; use by one person does not diminish the ability of another person to use it.
37)
Which one of the following statements is false?
a) A laissez-faire economy is an economy with little government regulation.
b) A laissez-faire view of the economy favors unregulated marketa.
o) A laissez-faire view is that self-interested individuals interact in a sootally beneficial
38)
way.
d) Laissez-faire is a French term that means "let it be."
e) A laissez-faire economy is an economy with central planning
The term "effective demand" refers to...
a) a change in demand sufficient to change the market price.
b) a change in demand that increases efficiency.
o) demand that is aggregated among individuals.
d) demand backed by the willingness and ability to pay.
e) a change in demand that leads to a change in supply.
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