The production possibilities frontier shows the trade-offs that the producer faces but does not identify the choice the producer will make

a. True
b. False
Indicate whether the statement is true or false


True

Economics

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If the inflation rate increases,

A) the real interest rate rises. B) real GDP growth increases. C) potential GDP increases. D) the nominal interest rate falls. E) the velocity of circulation increases.

Economics

In 2000, you could buy a Cadillac DTS for $45,000. In 2011, the Cadillac DTS sold for $55,000

While both models include anti-lock brakes and air bags (along with other similar features), the 2011 model also includes satellite radio and new technology that provides improved gas mileage and safer driving. If the Cadillac DTS was included in the CPI basket, it would create A) a downward bias in the inflation rate. B) an upward bias in the CPI as a result of quality change bias. C) an upward bias in the CPI as a result of commodity substitution bias. D) a downward bias in the CPI as a result of new goods bias.

Economics

The U.S. Constitution established the orderly sale of the western lands

Indicate whether the statement is true or false

Economics

If a firm is a price taker in both the input and output markets, its marginal revenue product of labor is given by:

a. the price of its output times the labor's marginal physical productivity. b. the marginal value product of labor. c. the marginal revenue product of capital times the ratio of the wage rate to the rental rate on capital. d. all of the above.

Economics