Explain what productive efficiency means. Describe how productive efficiency is represented by a PPF
An economy is producing efficiently if it is producing the maximum amount of output with a set amount of resources and technology. Efficiency is represented by all of the points that lie along the PPF.
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If the U.S. Congress passes legislation to raise taxes to control demand-pull inflation, then this would be an example of a(n)
A. supply-side fiscal policy. B. contractionary fiscal policy. C. expansionary fiscal policy. D. nondiscretionary fiscal policy.
The legal system in the United States tends
A) to support monopolies. B) to actively discourage unionization. C) to discourage the entry of new firms into industries. D) to promote competition.
Macroeconomics is the branch of economics that studies economic aggregates for the economy as a whole
a. True b. False Indicate whether the statement is true or false
Which of the following statements about an increasing-returns-to-scale industry is not true?
a. It will tend to concentrate production in the hands of a very few large firms. b. Firms in the industry face higher costs per unit of production as their level of output increases. c. Opportunity costs may rise with the level of output in such industries. d. Tariffs can be used to stimulate production by a domestic industry capable of achieving increasing returns to scale. e. The costs of producing a unit of output fall as more output is produced in such industries.