Someone can become an inefficient producer of a particular good by becoming an extremely potent producer of some other good
A) if efficiency and inefficiency are not calculated in terms of opportunity costs.
B) if efficiency is measured in terms of labor hours required to produce each good.
C) if a larger output of one good entails a smaller output of the other.
D) if the demand for one of the goods declines.
C
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An indirect effect of an increase in the price level works through
A) changes in trade balances as domestic goods become more expensive, causing interest rates to move in the opposite direction from the change in the exchange rate. B) interest rates as people save more as the higher prices make their money balances less attractive. C) people substituting out of domestic goods and into foreign goods as exchange rates rise. D) interest rates as people borrow to maintain their money balances, bidding up interest rates and reducing total planned real expenditures.
Other things remaining the same, if the U.S. interest rate differential increases, the demand curve for U.S. dollars shifts ________ and the supply curve of U.S. dollars shifts ________
A) rightward; rightward B) rightward; leftward C) leftward; rightward D) leftward; leftward
The term excess capacity refers to the fact that a firm produces a lower quantity than it would if it operated at the efficient scale
a. True b. False Indicate whether the statement is true or false
Which of the following is an example of a perfectly competitive market?
A. Apples B. Frozen yogurt shops C. Fast-food D. Cable company