The slope of the production possibilities curves tells you a. the quantity of all inputs available for productive uses. b. the length of time required to switch between two different economic...

The slope of the

production possibilities curves tells you

a. the quantity of all inputs

available for productive uses.

b. the length of time required to

switch between two different economic activities.

c. how much of one good must be

sacrificed in order to produce more of the other.

d. the size of the labor force.

The

person who creates a product innovation and brings it to market is providing

the resource of

a. labor.

b. land.

c. entrepreneurship.

d. capital.

What

will happen when the price of a good is held below its equilibrium price?

a. A surplus results.

b. Supply of the good decreases.

c. Demand for the good increases.

d. A shortage results.

If

dry cleanersincrease the fees for cleaning services, economic theory predicts

that

a. the supply of dry cleaning

services will decrease, but demand will remain constant.

b. the supply of dry cleaning

services will increase, but demand will remain constant.

c. demand will remain unchanged, but

the quantity of cleaning services demanded falls.

d. the quantity of cleaning services

demanded remains unchanged, but the demand falls.

At

prices above the equilibrium price, shortages occur.

a. true

b. false

The

supply curve shifts when the firm experiences a change in its production

technology.

a. true

b. false

Which

of the following statements is true with respect to total utility and marginal

utility?

a. Marginal utility is always equal

to total utility.

b. Total utility will always be

negative when marginal utility is positive.

c. Total utility is minimized when

marginal utility is zero.

d. Marginal utility can decline as

total utility rises.

The

price elasticity of demand becomes relatively greater as more substitutes are

easily available.

a. true

b. false