Refer to the graph below. Which of the following statements about combination G is true?
A. The nation cannot produce combination G even if the nation gets additional resources
B. The nation can currently produce combination G if the nation specializes and trades with another nation
C. The nation may not be able to produce combination G, but it can consume that combination if it specializes and trades
D. The nation would much prefer to be at combination F than at combination G
Answer: C
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Refer to the above figure. A budget deficit occurs when real national income is
A) Y3. B) Y1. C) Y2. D) None of the above: cannot be determined given the information.
The real business cycle theory emphasizes that in today's modern age, ________ technology plays a significant role in causing economic fluctuations
A) obsolete ideas in B) advances in C) shocks to D) duplications in
Vertical contracts that aim to decrease retailer prices typically
a. Benefit the consumer and the manufacturer but hurt the retailer b. Benefit the manufacturer and retailer but hurt the consumer c. Benefit the retailer and consumer but hurt the manufacturer d. Benefit the manufacturer, retailer and consumer
If the government sells U.S. Treasury bonds to finance its budget deficit, one would expect:
a. interest rates to rise. b. domestic investment to rise. c. tax rates to fall. d. inflation to rise. e. interest rates to fall.