If a society's consumption possibilities are identical to its production possibilities that society has
A. a closed economy.
B. a free trade policy.
C. an open economy.
D. a two-person economy.
Answer: A
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Which of the following is likely in a monopolized market?
a. a price that exceeds marginal cost b. a price that exceeds marginal revenue c. a welfare loss due to the restriction of output d. all of the above
How does imperfect information affect market decisions?
a. It doesn't, because information is generally excellent. b. It leads to inefficient outcomes in which expected benefits and actual benefits diverge. c. It leads to wasteful attempts to improve information. d. It leads to exploitation of sellers by buyers.
The windfall profits tax on oil will curtail oil production if
a. oil executives decide to be spiteful. b. the demand for oil is inelastic. c. the supply curve for oil is upward sloping. d. the supply curve for oil is vertical.
In order for Ethiopia to increase its future economic growth, it must choose a point that is:
a. further along on its production possibilities curve toward the capital goods axis. b. above its production possibilities curve. c. below its production possibilities curve. d. further along on its production possibilities curve toward the consumption goods axis.