If an economy is producing efficiently, then
a. there is no way to produce more of one good without producing less of another good.
b. it is possible to produce more of both goods without increasing the quantities of inputs that are being used.
c. it is possible to produce more of one good without producing less of another good.
d. it is not possible to produce more of any good at any cost.
a
You might also like to view...
In the foreign exchange market, a broker reveals the names of the banks making bids or offers to the trading banks before the trade has been agreed upon
Indicate whether the statement is true or false
Suppose a firm doubles its output in the long run. At the same time the unit cost of production remains unchanged. We can conclude that the firm is
A) exploiting the economies of scale available to it. B) facing constant returns to scale. C) facing diseconomies of scale. D) not using the available technology efficiently.
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
Consider the market for wheat. If there is an improvement in harvesting technology,
A) the demand curve for wheat shifts rightward. B) the demand curve for wheat shifts leftward. C) there is a movement up along the demand curve. D) the supply curve for wheat shifts rightward. E) the equilibrium price rises.