Choosing to produce at any point within a production possibilities frontier is:
A. inefficient, meaning the society would not be using all its available resources in their best possible uses.
B. efficient, meaning the society would be using all its available resources in their best possible uses.
C. unobtainable, meaning the society cannot produce that combination of goods.
D. efficient but not attainable.
A. inefficient, meaning the society would not be using all its available resources in their best possible uses.
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The Stolper-Samuelson Theorem predicts
A) the level of productivity in export industries. B) which factors are abundant. C) the income distribution effects of trade. D) which goods will be exported. E) the importance of intraindustry trade.
Which of the following best summarizes the importance of business failure and the central idea of "creative destruction in a market economy"?
A) When a business fails, the assets and resources from that business become unemployed, resulting in higher government subsidies. B) Only through frequent business failure will it be possible to avoid income being concentrated into the hands of a few rich entrepreneurs. C) The new, rival businesses that drive out old competitors tend to be less efficient and less creative than the older established businesses. D) Business failure allows the assets and resources from that business to move into other areas where they will be more productive.
High military spending has _____ the economic growth of LDCs.
Fill in the blank(s) with the appropriate word(s).
Which of the following is correct if real GDP is $20 trillion and spending is $20.5 trillion?
What will be an ideal response?