The assumptions of the Production Possibilities Frontier Model include:
a. Output is limited to just two broad classes of products: consumer goods and capital goods.
b. The time period is any time period of any length.
c. Society's knowledge changes each year.
d. Rules of the game are allowed to change.
a
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The federal courts are increasingly willing to tolerate resale price maintenance agreements between manufacturers and retailers
A) when they are necessary to prevent predatory pricing. B) when they enable small businesses to survive more profitably. C) when they provide retailers with incentive to supply customer services desired by manufacturers. D) whenever both parties voluntarily agree on them. E) whenever they are necessary to cover sunk costs.
A decrease in the price of a complement shifts the demand curve to the
a. right b. left c. it does not change the demand curve d. none of the above
An economy is statically efficient if it is operating:
a. On its production possibilities frontier b. On its Lorenz Curve c. On its Friedman curve d. On its Samuelson curve e. All of the above
When the Fed buys bonds in the open market, we can expect the
A) exchange rate to rise and interest rates to fall. B) exchange rate and interest rates to rise. C) exchange rate to fall and interest rates to rise. D) exchange rate and interest rates to fall.