1. A production possibilities curve shows the relationship between the production of any two categories of goods.
2. Open opportunity, private property, contracts, voluntary exchange are basic principles that are fundamental to American free enterprise.
3. When government intervention causes the supply of a good to rise, the supply curve shifts to the right.
4. Elena is looking for an apartment. The fact that Elena misses two days of work at the supermarket to visit several different apartments available for rent is an example of her search costs.
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