Refer to the production possibilities frontier in the figure above. Suppose a country is producing at point a. A movement to point ________ means that the country ________
A) d; must give up 20 million capital goods
B) e; is not operating efficiently
C) d; gives up 10 million consumer goods
D) b; is producing at an inefficient point
A
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Refer to Figure 13-13. If the diagram represents a typical firm in the market, what is likely to happen in the long run?
A) Inefficient firms will exit the market and new cost-efficient firms will enter the market. B) New firms will enter the market causing the demand to decrease for existing firms. C) Competition will be intensified as firms strive to make long-run profits. D) Some firms will exit the market causing the demand to increase for firms remaining in the market.
Because of the owner's prejudice, a firm chooses to discriminate against hiring Oriental workers. Compared to an otherwise identical nondiscriminating firm hiring in the same competitive market, the discriminating firm will have
a. higher costs. b. lower profits. c. a lower quantity of labor supplied at every wage. d. All of the above are correct.
If the average total cost curve is always above the demand curve of a monopolist,
a. the profits of the monopolist will be large. b. the monopolist must be producing inefficiently. c. even a monopolist will suffer economic losses. d. entry will occur, forcing the monopolist to reduce price and expand output.
Firms that are engaging in persistent dumping need to be able to prevent resale between the foreign and domestic markets.
Answer the following statement true (T) or false (F)