If an economy is operating at a point inside the production possibilities curve,
A. its resources are not being used efficiently.
B. opportunity costs are decreasing as more of one good is traded for the other good.
C. technology has improved.
D. there is full employment of all resources.
Answer: A
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Inflation adjusted hourly wages for the average hourly worker is _______ today than it was in 1973.
A. higher B. lower C. about the same
The phrase "a change in demand" most directly implies a
A) movement along a demand curve. B) movement along the price curve. C) change in the quantity demanded of a good. D) shift of the demand curve. E) movement along the quantity curve.
All of the following are points of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 EXCEPT
A) creating a Consumer Financial Protection Bureau. B) requiring mortgage lenders to review income and credit histories of applicants to ensure they can afford payments. C) imposing tighter restrictions on banks to limit risky investments. D) requiring firms that create mortgage backed securities to keep at least 50 percent of their value as reserves.
Refer to Table 4-6. The table above lists the marginal cost of polo shirts by Marko’s, a firm that specializes in producing men’s clothing. What will happen if the price of polo shirts decreases from $15 to $10?
A) consumers will buy no polo shirts.
B) the marginal cost of producing the third polo shirt will increase to $25.
C) producer surplus will fall from $13 to $3.
D) there will be a shortage of polo shirts.