When an economy is operating on its production possibilities curve, more production of one good means less production of another because:
a. resources are limited.
b. resources are not perfectly adaptable to alternative uses.
c. wants are limited.
d. wants are unlimited.
e. some resources are not employed.
a
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In perfect competition, when firms are maximizing profits and households are maximizing utility,
A. the outcome is inefficient. B. individual welfare is maximized, but social welfare is not. C. voluntary exchange can be used to make both firms and households better off. D. Pareto optimality has been obtained.
For a fixed proportion production function, at the vertex of any of the (L-shaped) isoquants the marginal productivity of either input is a. constant b. zero
c. negative. d. a value that cannot be determined.
Because of the Great Recession of 2008, the trade deficit in 2009 relative to the trade deficit in 2006 was?
A. twice. B. three times. C. one fourth. D. one half.
The goals of helping those in poverty and creating income equality _____
a. are the same thing b. are sometimes in conflict c. are always in conflict d. are never in conflict