The above figure shows a nation's production function. Point A is
A) the maximum amount of real GDP the nation can produce.
B) the labor market equilibrium quantity of employment and real GDP.
C) attainable if the economy is inefficient.
D) attainable if the nation uses resources efficiently.
E) unattainable given the state of the economy.
E
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The economy is currently on its production possibilities frontier (PPF). A politician says that it is possible to get more of everything---more infrastructure, more schools, more national defense, more spending on social programs, and so on. The politician is
What will be an ideal response?
Can consumption efficiency be achieved even if the efficient product mix is not achieved?
What will be an ideal response?
Which of the following best defines capital as a factor of production?
A) the gifts of nature that businesses use to produce goods and services B) the knowledge and skills that people obtain from education and use in production of goods and services C) financial assets used by businesses D) instruments, machines, and buildings used in production
Home Depot sells new and used doors to contractors who build new homes. Home Depot also sells new and used doors to homeowners. Which of the following would be counted in GDP?
A) the sale of a new door to TapKon construction for installation into a new home B) the sale of a used door to a homeowner C) the sale of a new door to homeowner D) the sale of a used door to TapKon construction for installation into a new home