Which of the following statements best describes economic efficiency?
a. Economic efficiency occurs when all choices on the production possibilities frontier show productive efficiency because an increase the quantity of one good will also increase the quantity of another.
b. Economic efficiency occurs when no choices on the production possibilities frontier show
productive efficiency because an increase the quantity of one good will also increase the quantity of another.
c. Economic efficiency occurs when all choices on the production possibilities frontier show productive efficiency because an increase the quantity of one good will decrease the quantity of another.
d. Economic efficiency occurs when no choices on the production possibilities frontier show productive efficiency because an increase the quantity of one good will decrease the quantity of another.
c. Economic efficiency occurs when all choices on the production possibilities frontier show productive efficiency because an increase the quantity of one good will decrease the quantity of another.
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The notion that technological change is not random but instead is driven by the pursuit of profits is an essential element of
A) classical growth theory. B) neoclassical growth theory. C) the new growth theory. D) perpetual growth theory.
Under the perfectly competitive market structure, the demand curve of an individual firm is
A) perfectly inelastic. B) downward sloping. C) relatively inelastic. D) perfectly elastic.
What was not a reason for the decline of the Deep South between the Civil War and 1890?
a. Elimination of economies of scale in the production process. b. An extended period of droughts and bad weather. c. Significant withdrawal of labor from the fields, especially by women and children. d. Increased competition from cotton suppliers in other nations.
If the dollar-pound exchange rate is $2.00 per pound, then a shirt priced at 25 pounds will cost an American
a. $25 b. $50 c. $26 d. $27 e. an amount that cannot be calculated without additional information.