Question

C Relatively elastic Relatively inelastic Unit elastic 26. Which of the following is true of an economy's production possibilities curve? It shows the combinations of any two resources that can be used to produce and efficient leve of b It shows the alternative combinations of goods that can be produced by fully employing scar dIt is bowed in (convex to the origin) because of changing levels of technology output b it shows the alternative combinations of goods that can be produced by resources It must be a straight line when all resources are fully employed scar It is bowed out (concave to the origin) when marginal opportunity costs are constant 27. All of the following will cause a rightward shift in the demand schedule for a normal good EXCEP A decrease in the price of the good A decrease in the price of a complementary good An increase in the price of a substitute good An increase in consumers' income An increase in consumers' preference for the good 28. Game theo is usefu Firms are price takers There is only one producer There are many small producers Products are identical for all firms e There are interdependent firms lead to zero economic profits in the long-run? nllowing will most likely

Answer 1

a) For question 26 answer is "B", It shows the alternative combination of goods that can be produced by fully employing scarce resources.

b) for 27 it is "A" a increase or decrease in the price will not shift the demand curve at all. It will only cause a movement along the demand curve.