In the above figure, the combination of computers and televisions shown by point x
A) is not attainable at the point in time for which the graph is drawn.
B) can be attained only if some of society's resources are unemployed.
C) suggests that the law of increasing relative costs does not hold.
D) results only because society allocates its resources inefficiently.
A
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If a study shows that two goods have a high negative cross elasticity of demand value, then the two goods are competing in the same market.
Answer the following statement true (T) or false (F)
Refer to Figure 28-2. Suppose the Fed used expansionary policy to push short-run equilibrium to point B. If the short-run equilibrium remained at point B long enough
A) the short-run Phillips curve would shift down. B) the short-run Phillips curve would shift up. C) the economy would stay at point B in the long run. D) the economy would move back to point A.
A busy coffee shop hires an additional barista, enabling them to serve customers nearly twice as fast. The shop responds by hiring two more baristas. After this second round of hiring, the cost of serving each customer increases. What might explain this rise?
a. Diminishing returns of labor have set in. b. The company is experiencing economies of scale. c. Fixed costs are being spread over larger output. d. Total revenues have surpassed accounting costs.
The net value of flows of financial assets and similar claims (excluding official international reserve asset flows) is called the
A. trade balance. B. financial account balance. C. current account balance. D. official reserve balance.