Which of the following does the production possibilities curve illustrate?
a. The tradeoffs facing a society
b. The fact that more of one product can be produced only by reducing the quantity of other products that are being produced, assuming that resources are being used efficiently
c. The maximum output that can be produced with a limited amount of resources
d. The opportunity cost of alternative choices
e. All of these
e
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"Mandating longer sentences for any criminal's third arrest will lead to a reduction in crime. Less crime will reduce the number of police officers cities will hire." This quotation: a. contains positive statements only
b. contains normative statements only. c. contains both normative and positive statements. d. contains neither normative nor positive statements.
Suppliers who are kept out of the market generally do not retaliate because:
A. they aren't hurt by the restriction. B. the costs of organizing and lobbying exceed the expected gains. C. government prevents them from organizing. D. the costs of organizing are higher than those of demanders.
In 2005–2006, the Fed increased interest rates in an attempt to halt inflation. What was the most likely effect of raising interest rates on velocity?
A. Velocity will decrease. B. Velocity will increase. C. Velocity will remain constant. D. Velocity is unrelated to saving accounts.
The number of banks in the U.S. has fallen almost by half in the past twenty years or so. Was this the result of bank failures or were some due to another cause? Explain.
What will be an ideal response?