Productive efficiency implies that
A) it is impossible to obtain gains in one area without losses in another.
B) it is possible to obtain gains in one area without losses in another.
C) there are too many resources available.
D) there are too few resources available.
A
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During periods when the inflation rate is positive, how does the real interest rate compare to the nominal interest rate?
What will be an ideal response?
Commercial banks are financial intermediaries, as are ________
A) household savers B) state and local governments C) insurance companies D) organized exchanges
Why is deflation such a problem?
A. It increases the value of debt, making it harder to pay it back. B. It decreases the value of debt, making it harder to pay it back. C. It increases the value of debt, making it easier to pay it back. D. It decreases the value of debt, making it easier to pay it back.
Country A and country B are the same except country A currently has more capital. Assuming diminishing returns, if both countries increase their capital by 100 units and other factors that determine output are unchanged, then
a. output in country A increases by more than in country B. b. output in country A increases by the same amount as in country B. c. output in country A increases by less than in country B. d. None of the above is necessarily correct.