Refer to the above figure. We are currently producing at point c. Which of the following statements is TRUE?
A. The only way to produce more of Goods X or Y is to have an increase in the amount of resources.
B. Resources are not being efficiently utilized.
C. The Law of Increasing Additional Cost does not hold.
D. Resources are being efficiently utilized.
Answer: B
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If the price of K declines, the demand curve for the complementary product J will:
A. shift to the left. B. remain unchanged. C. shift to the right. D. decrease.
A flexible exchange rate between two countries is determined by
A. the International Monetary Fund. B. the demand and supply of both countries' currencies. C. Bretton Woods agreement. D. the governments of both countries.
Karl Marx believed the central figures in an industrial economy were the
A. labor union leaders. B. heads of the ruling political party. C. capitalists. D. stock market speculators.
According to the Laffer curve,
a. an increase in tax rates will always cause tax revenues to increase. b. when marginal tax rates are high, an increase in tax rates is likely to cause tax revenues to increase. c. when marginal taxes are low, an increase in tax rates will probably cause tax revenues to decline. d. when marginal tax rates are high, a reduction in tax rates may increase tax revenue.