If an economy is operating inside its production possibilities curve for tanks and bread:
a. scarcity does not exist
b. all resources are being used efficiently.
c. production of bread can only increase by sacrificing the production of tanks.
d. production of bread and tanks can both increase.
d
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Suppose that Oscar sells pork in a perfectly competitive market. The market price of pork is $3 per pound. The marginal revenue generated by Oscar from selling the 12th pound of pork would be
A. $4. B. $3. C. $36. D. Not enough information is given to answer this question.
The gap between rich and poor countries is likely to be greatest for
a. life expectancy b. literacy rate c. per capita income d. moral development e. years of education
If you will receive $5,000 two years from today, what is its present value if the discount rate is 5 percent?
a. $5,025 b. $4,500 c. $3,429 d. $4,535 e. $4,762
If an economy is operating at short-run equilibrium below the full-employment level of real GDP, the self-correction model result is that:
A. unemployment increases. B. unemployment falls. C. cyclical unemployment increases. D. frictional and structural unemployment increase.