Which of the following is NOT true concerning a society's production possibilities frontier (PPF)?
A) It reveals the maximum amount of any two goods that can be produced from a given quantity of resources.
B) Tradeoffs occur when moving along a PPF.
C) Production efficiency occurs when production is on the frontier itself.
D) Consumers will receive equal benefits from the two goods illustrated in the PPF.
D
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Deadweight loss occurs when
A) consumer surplus is greater than producer surplus. B) surplus losses to one group due to intervention are not offset by surplus gains to another. C) consumer surplus is reduced. D) consumer surplus is negative.
Economic bads are items
A) for which the produced quantity is less than the amount desired at a positive price. B) for which the desired quantity is less than what nature provides at a zero price. C) that individuals desire but which receive social disapproval. D) that receive social approval but which governments dislike.
The structure of an organization is influenced by transactions costs
Indicate whether the statement is true or false
The process of adjustment to a new long-run equilibrium in a perfectly competitive industry is complete when
a. no firms want to enter or exit the industry. b. every firm has adjusted its production process to make the most efficient use of its resources. c. investors in the industry receive the standard economy-wide rate of return on their investments. d. All of the above are correct.