Compare two economies A and B that start with identical production possibilities curves. Both are fully employed. Economy A chooses to produce 6 consumption goods and 3 capital goods, while economy B chooses 4 consumption goods and 5 capital goods. This information suggests that
a. economy A is producing less efficiently than economy B
b. economy B is producing less efficiently than economy A
c. economy A and economy B, although producing different combinations, grow at thesame rate because they are both fully employed
d. economy A's growth rate will be higher than economy B's
e. economy B's growth rate will be higher than economy A's
E
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A mixed economy is one that combines both public and private ownership of property.
Answer the following statement true (T) or false (F)
Why do some people tip generously at restaurants to which they never plan to return?
What will be an ideal response?
During the twentieth century, a primary driver of the expansion of the U.S. income tax system has been _____
a. westward expansion b. natural disasters c. military conflict d. withholding
If all the assumptions underpinning the policy irrelevance proposition are in place, fully anticipated monetary policy will
A) affect the unemployment rate but have no impact on the level of real Gross Domestic Product (GDP). B) have an impact on real Gross Domestic Product (GDP) but cannot alter the level of unemployment. C) effectively alter both the rate of unemployment and the level of real Gross Domestic Product (GDP). D) not change either the level of real Gross Domestic Product (GDP) or the unemployment rate.