Even though points inside a production possibilities curve are attainable, why are they not preferred?
What will be an ideal response?
Points that lie inside a production possibilities curve indicate that an economy's resources have not been utilized efficiently and that some resources are lying idle. Therefore, these combinations of the goods are inefficient and are not preferred.
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________ policy changes are made through the legislative process, while ________ policy changes are made by the Federal Open Market Committee.
A. monetary; fiscal B. monetary; international C. fiscal; monetary D. fiscal; international
The government agency that oversees the banking system and is responsible for the conduct of monetary policy in the United States is
A) the Federal Reserve System. B) the United States Treasury. C) the U.S. Gold Commission. D) the House of Representatives.
Which of the following countries has historically been more willing to sacrifice environmental quality for additional economic output?
a. United States b. China C. Canada D. France
Given the supply curve of butter, a reduction in the price of margarine will tend to:
a. Increase the demand for margarine b. Increase the demand for butter c. Lower the price of butter d. Raise the price of butter