Which point on the graph below is unattainable because the economy does not have enough resources to produce it?
What will be an ideal response?
point e
Feedback;
Remember that resources within society are scarce, so given the available resources, it cannot produce at that output level. Points beyond the production possibilities frontier may be desirable but are not feasible, given the resources and technology available.
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If the expected inflation rate was 2.5%, the expected real interest rate was 4.0%, and the real interest rate turned out to be 5.1%, then the nominal interest rate equals
A) 1.4%. B) 1.5%. C) 2.6%. D) 6.5%.
If a bond is sold in the secondary market,
a. the issuing firm is buying back its own bond b. the issuing firm does not obtain any part of the price c. the seller remits a portion of the price to the issuing firm d. the yield must be insufficient to justify sale on the primary market e. the seller is the issuing firm
The more substitutes there are for a monopolist's product
A) the less elastic is the demand curve. B) the more elastic is the demand curve. C) the steeper is the demand curve. D) the more positively sloped the demand curve becomes.
The Rule of 70, as applied to real GDP growth, can be used to find the
A) real GDP growth rate necessary to double growth. B) growth rate of real GDP. C) number of years it takes for the level of real GDP to double. D) population growth rate necessary to double the GDP growth rate. E) number of years it takes for the growth rate of real GDP to double.