Refer to Figure 2-1. Along the production possibilities frontier, the most efficient point of production depicted is:
A. Point B
B. Point C
C. Point D
D. All points on the production possibilities frontier are equally efficient.
Ans: D. All points on the production possibilities frontier are equally efficient.
You might also like to view...
The interest rate on interbank loans is called the
A) discount rate. B) federal funds rate. C) repo rate. D) prime rate.
Which of the following might be a method that the government could use to correct a negative externality?
A) an effluent fee on waste from the production of goods that create negative externalities B) government subsidies to producers of goods that create negative externalities C) financing additional production of goods that create negative externalities D) encouraging overallocation of resources of production of goods that create negative externalities
Commitment devices can be:
A. a way to use choice architecture to help you avoid temptation. B. formal policies or products. C. a way for people to voluntarily restrict their choices in order to make it easier to stick to plans. D. All of these statements are true.
Economists have developed models of risk aversion using the concept of
a. utility and the associated assumption of diminishing marginal utility. b. utility and the associated assumption of increasing marginal utility. c. income and the associated assumption of diminishing marginal wealth. d. income and the associated assumption of increasing marginal wealth.