Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point F
A. is efficient and attainable.
B. cannot be produced with the current state of technology.
C. represents underallocation of resources.
D. represents what the people want.
Answer: B
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An increase in the price of grape juice causes an increase in the marginal revenue product of labor used to produce grape juice
Indicate whether the statement is true or false
What do cooperative firms do if they make a profit?
A) Cooperatives never earn profits, so this issue does not occur. B) Cooperatives must pay their profits to the federal governments as a windfall profit tax. C) Cooperatives must keep half of the profits and return the other half to their members. D) Cooperatives generally return the profits to their members as a dividend.
Macland is specializing and trading with Microland. Where will Macland be on its production possibility frontier?
a. It will be on the PPF. b. It will be inside the PPF. c. It will be outside of the PPF. d. It will be shifting the PPF out.
Which of the following is true?
a. People who invest in the stock market are virtually certain to make money. b. Investors in the stock market can reduce their risk if they hold shares of specific stocks for only short periods of time. c. The risk of stock market investments can be reduced through the holding of a diverse portfolio of unrelated stocks over long periods of time. d. In the long run, corporate bonds can be expected to yield a higher real rate of return than ownership of stocks.