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A budget line (also known as a budget constraint) represents:

Which of the following would most likely shift a production possibility frontier (PPF) outward (i.e., an increase in the PPF)?

A binding price ceiling occurs when it is set:

Which of the below markets best represents what will happen in the market for marijuana when the market is legalized? The subscript 0 refers to the situation when the market is illegal, and the subscript 1 refers to the situation when the market is legalized. Please note, the market labels for each graph appear above the graph.  

A government is deciding whether to subsidize higher education or expand military spending. Different groups emphasize economic mobility, national security, or long-run productivity. What is the most economically sound approach to this decision?  

Two cities reside on opposite sides of a river. Currently, there is only one two-lane bridge across the river to connect the cities. Both cities are experience economic growth and have hired economists to do a benefit-cost analysis to determine the optimal number of additional bridges to build. All dollar values in the table are in millions of dollars. Some cells in the table are left blank. You will need to calculate the missing values to answer the set of multiple choice questions. Number of Bridges MSB ($) TB ($) MSC ($) TC ($) NB ($) 0 — 0 — 0 1 20 20 2 2 18 2 18 3 5 33 3 16 54 5 10 44 4 14 68 7 5 12 80 8 25 6 10 90 10 35 7 98 47 8 6 104 15 62 42 How many bridges should the two cities build?

The facts being otherwise as previously stated, Justin knows that the Marvelous Mare was founded by Tom’s grandfather and that Tom would like to own a horse bred there.

A recent study found that coffee is rich in antioxidants, and that drinking coffee daily will ower risks of Alzheimer’s diesease, improve brain function and mood, and increase beneficial gut bacterial (see BllomberBusiness, Feb 19, 2015). Of the four markets represented below, which demonstrates the effect of the study on the market for coffee? Please note, the market labels for each graph appear above the graph. 

Able hired Carr to restore Abie’s antique car for $800. The terms of their oral agreement provided that Carr was to complete the work within 18 months. Actually, the work could be completed within one year. The agreement is

The principle of diminishing marginal benefit states that: