Using Figure 4.1, assume that point C represents the best possible mix or optimal level of output for this society. If the market fails and produces a suboptimal mix of output, then it could produce at
A. Point E or F.
B. Point A, B, D, or E.
C. Point D or F.
D. Point A, B, D, or F.
Answer: B
You might also like to view...
Refer to Figure 10-9. If the consumer has $240 to spend on DVDs and CDs, what is the price of a CD if the budget constraint is BC2?
A) $8 B) $10 C) $20 D) $40
An economy's production function is Y = A , and the economy's total output in equilibrium is $800 billion. Total capital income in this economy is ________
A) $200 billion B) $25 billion C) $750 billion D) $267 billion E) none of the above
Behaving strategically means:
A. evaluating decisions in which players act in their own self-interest, but the interplay of those decisions does not exist. B. acting to achieve a goal by anticipating the interplay between your own and others' decisions. C. acting to achieve a goal by withholding key information from the person with whom an exchange is being made. D. evaluating the impact of your choices on an uninvolved third party.
In terms of the world as a whole, imports must equal exports because
A. Most countries, other than the United States, have a balanced trade situation. B. The United Nations requires it. C. Every good exported by one country becomes an import for another country. D. It is part of international law.