According to classical economists, the economy
A) always operates at a point below its institutional production possibilities frontier (PPF).
B) always operates close to or on its institutional PPF.
C) seldom operates close to or on its institutional PPF.
D) never operates close to or on its institutional PPF.
B
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Diversification is most effective in reducing:
A) market risk B) systemic risk C) idiosyncratic risk D) all forms of risk
When total utility is falling
A. marginal utility is at a maximum. B. marginal utility is at zero. C. marginal utility has decreased, but is now increasing. D. marginal utility is negative.
Which of the following is a problem inherent in centrally planned economies?
A) Households and firms make poor decisions in choosing how resources are allocated. B) There is too little production of low-cost, high-quality goods and services. C) Production managers are more concerned with satisfying consumer wants than with satisfying government's orders. D) Exports tend to exceed imports.
Why do economists say that even very rich people face scarcity?
What will be an ideal response?