In this economic growth and production possibilities curve, operating under the new production possibilities curve will always produce more than the old one, provided that the ______.
a. economy in the new curve is inefficient
b. economy for both curves is efficient
c. same technology is used in the economy of both curves
d. economy in the new curve uses fewer resources
b. economy for both curves is efficient
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Refer to Table 2-10. What is Fred's opportunity cost of making a pogo stick?
A) 6/7 of a pogo stick B) 1/2 of a unicycle C) 1/3 of a unicycle D) 3 unicycles
If the average interval between firms' price adjustments is relatively long
A) an increase in aggregate demand will cause a relatively short-lived increase in real GDP. B) an increase in aggregate demand will cause a relatively long-lived increase in real GDP. C) a reduction in aggregate demand will cause a relatively short-lived reduction in real GDP. D) none of the above.
Suppose a monopolist's costs and revenues are as follows: ATC = $45.00; MC = $35.00; MR = $35.00; P = $45.00. The firm should
A) increase output and decrease price. B) decrease output and increase price. C) not change output or price. D) shut down.
Rent control is usually justified on the grounds that it protects moderate- to low-income families from the burden of rapidly rising rents and from eviction if they are unable to pay. It also prevents landlords from reaping windfalls as property values rise. Opponents note that rent controls usually lead to a reduced supply of rental housing and shortages. The proponents of rent controls support
them primarily on the grounds of a. efficiency. b. equality. c. externalities. d. cost disease of services.