Where can an economy not produce?
a. inside its production possibilities frontier
b. on its production possibilities frontier
c. outside its production possibilities frontier
d. at the endpoints of its production possibilities frontier
c
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When spending is greater than output, firms will experience falling inventories, and prices of goods and services will rise.
Answer the following statement true (T) or false (F)
Which statement is true?
A. Only the poor are hurt by inflation. B. During times of inflation the nominal interest rate is considerably higher than the real interest rate. C. People living on fixed incomes are generally helped by inflation. D. None of the statements are true.
Under which conditions might economies of scale result?
A. hampered coordination brought about by bureaucracy B. increasing costs of inputs C. increasing output prices D. workers having to spend less time switching back and forth between tasks.
Buying a cup of coffee with a dollar bill represents the use of money as a:
a. unit of account. b. medium of exchange. c. store of value. d. All of the answers are correct.