If it is not possible to increase the output of one good without decreasing the output of the other, when there are only two goods, then
A. this situation would describe a point on a production possibilities frontier for the producer.
B. the outcome can be described as efficient.
C. there is no unemployment of resources.
D. All of these outcomes are correct.
Answer: D
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If a stock is expected to pay a dividend of $40 for the current year, what is the approximate present value of this stock, given at discount rate of 5% and a dividend growth rate of 3%?
What will be an ideal response?
What is one reason private solutions to externalities do NOT always work?
a) Government participation in such solutions complicates the process. b) Some parties benefit from externalities. c) Interested parties incur costs in the bargaining process. d) The actual costs and benefits of the problem are difficult to see.
When the production possibilities curve shifts outward,
A) the price level rises in the long run. B) the long-run aggregate supply curve is unchanged. C) the long-run aggregate supply curve shifts to the left. D) the long-run aggregate supply curve shifts to the right.
Since World War II, the consumer price index has increased by an average of _____
a. 1.4 percent per year b. 2.1 percent per year c. 6.4 percent per year d. 5.6 percent per year e. 3.5 percent per year