The production possibilities curve represents the maximum feasible production combinations resulting from
A. a fixed amount of demand by consumers.
B. the mix of current resources that utilizes all available inputs using current technology.
C. the lack of trade-offs in production.
D. the lack of technology used in production.
Answer: B
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A monopolistic competitor will maximize its profits at the output level at which
A) TC = TR. B) MC = MR. C) the MC curve intersects the demand curve. D) MR = ATC.
The argument that trade in high-tech equipment can facilitate the implementation of advanced military technology in countries that may become strategic opponents later on is the
A) national security argument. B) infant industry argument. C) protecting domestic jobs argument. D) environmental and safety argument.
Contractionary fiscal policy
What will be an ideal response?
Under the most likely future scenario, the Medicare payroll tax would have to rise to
A. 6.60% imposed upon employers. B. 3.30% imposed upon employers. C. 6.60% imposed upon employees. D. 3.30% imposed upon employers and 3.30% imposed upon employees.