-The Table Above Lists Six Points on the Production Possibilities

question 233

Multiple Choice

-The table above lists six points on the production possibilities frontier for grain and cars. From this information you can conclude that production is inefficient if this economy produces

• A) 6 tons of grain and 18 cars.
• B) 4 tons of grain and 26 cars.
• C) 2 tons of grain and 27 cars.
• D) 8 tons of grain and 10 cars.

Recognize the role of scarce resources, technology, and scale economies in the formation of monopolies.

Understand the concept of natural monopolies and recognize examples in the economy.

Identify and understand barriers to entry in monopoly markets.

Assess the long-term sustainability of monopoly power under different conditions.

---

Definitions:

Matched Pairs

Matched pairs are a research design in which pairs of subjects are closely matched on key characteristics, with one subject in each pair receiving the treatment and the other serving as a control.

Population Variances

A measure of spread within a distribution or how much the members of the population differ from the population mean.

Pooled-variances T-test

A statistical method used to compare the means of two groups, assuming that the two populations have equal variances.

Rejection Region

In hypothesis testing, it is the range of values for which the null hypothesis is rejected in favor of the alternative hypothesis.