Basic Economic Concepts
If a perfectly competitive firm is operating at a point inside its production possibility curve due to underutilized resources, which of the following outcomes is the firm most likely to pursue in the short run?
What type of market has few large producers who may collude to set prices or outputs?
What does a movement from a point inside to a point on the Production Possibilities Curve (PPC) suggest about an economy's production?
Which outcome would result in a PPC shifting outward?
Considering a perfectly competitive market and assuming all firms are efficient and operate on their respective PPCs, what would be an expected outcome if there is sudden universal adoption of a new production technology?
Which factors can cause a shift in the production possibilities curve?
What term describes a situation where an increase in income leads to a less than proportional increase in the demand for normal goods?
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What is the opportunity cost of a decision?
How does a binding minimum wage affect employment levels when it is set above the equilibrium wage rate for unskilled labor?
If an economy is operating on its PPC, which of the following would most likely result from an increase in the amount of resources available?