An economy can produce at any point on or inside its production possibilities frontier, but it cannot produce at points outside its production possibilities frontier
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following factors cause the IS curve to shift?
a. A change the money supply. b. A change in the level of taxes c. An autonomous investment change that shifts the investment function d. Both b and c e. All of the above
According to the kinked demand theory, when one firm raises its price, other firms will:
a. also raise their prices. b. refuse to follow. c. increase their advertising expenditures. d. exit the industry.
The total producer surplus enjoyed by all sellers in a market
a. exceeds the market price b. is measured by the area below the market supply curve c. is called market producer surplus d. is the area below the market demand curve minus the area below the market supply curve e. is the area below the market supply curve minus the area below the market price
Which of the following best defines the situation where one firm's research yields knowledge that is used by society as a whole?
a. social cost b. opportunity cost of technology c. internalization of an externality d. technology spillover