Reference no: EM132289664

A technological advancement that increases the productivity of all inputs is best illustrated as: ?a movement along the production possibilities curve. ?a flattening of the production possibilities curve. ?an inward shift of the production possibilities curve. ?an outward shift of the production possibilities curve. ?a change in the curvature of the production possibilities curve. Three economic questions must be determined in all societies. What are they? ?How much will be produced? When will it be produced? How much will it cost? ?What the price of each good will be? Who will produce each good? Who will consume each good? ?What is the opportunity cost of production? Does the society have a comparative advantage in production? Will consumers desire the goods being produced? ?What goods will be produced? How will goods be produced? Who will get the goods produced? Which of the following best defines rational behavior? ?Analyzing the total costs of a decision ?Analyzing the total benefits of a decision ?Undertaking an activity as long as the total benefit of all activities exceeds the total cost of all activities ?Undertaking activities whenever the marginal expected benefit exceeds the marginal expected cost ?Undertaking activities whenever the average expected benefit exceeds the average expected cost In a market economy, the goods produced go to those: ?who have sufficient income and are willing to pay the price asked for those goods. ?whom the government views as best suited for consumption. ?whom business firms choose to favor. ?who desire the goods the least. ?who need the goods the most. ?Figure 2-1 shows the production possibilities curve of an economy that produces bread and wine. A movement from Point B to Point C: Figure 2-1 ?involves sacrificing bread in order to produce a greater quantity of wine. ?involves sacrificing wine in order to produce a greater quantity of bread. ?involves no sacrifice, as the opportunity cost of production is zero everywhere along the production possibilities curve. ?will increase the level of unemployment in the economy. ?will decrease the level of unemployment in the economy.