When an economy is producing inside its production possibility frontier,
A. production inefficiency occurs.
B. it is efficient so long as it is producing what people want.
C. only technological advances will allow it to increase production.
D. it must overcompensate by producing outside the curve to achieve efficiency.
Answer: A
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The Acme Company is a perfect competitor in its input markets and its output market. Its average product of labor is at its maximum and equals 30. The marginal revenue product of labor is $300. The price of its output
A) is $0.10. B) is $10. C) is $9,000. D) cannot be determined without more information.
A ____ is a type of derivative in which the seller promises to pay the buyer of a particular security the value of that security if it goes into default
a. credit default swap b. derivative c. mortgage backed security d. futures contract
Which of the following involves financial intermediation?
a. a bank makes a loan b. a household buys stock issued by a corporation c. a foreign government purchases U.S. government bonds d. All of the above are correct.
All food bought in the United States has an ingredient list on the packaging. This is an example of:
A. building a reputation. B. screening. C. requiring the more informed party to reveal missing information. D. signaling.