One of the assumptions underlying the production possibilities curve is that
A) at least one of the factors of production is a free good.
B) the quantity of the resources available for the production of economic goods is fixed over a given time period.
C) there is at least one factor of production that is employed inefficiently.
D) some of the factors of production are not being used.
B
You might also like to view...
What would happen in the market for laser eye surgery if insurance companies started to cover a portion of the price of voluntary procedures?
A) Demand and supply will both increase. B) Demand will increase, but this will not shift the supply curve. C) Supply will increase, but this will not shift the demand curve. D) Demand will increase and supply will decrease.
Every firm that has the ability to affect the price of the good or service it sells will
A) earn a short-run profit but break even in the long run. B) shut down in the short run. C) have a marginal revenue curve that lies below its demand curve. D) have a perfectly elastic demand curve.
A monopolistically competitive firm maximizes profit where
A) price > marginal cost. B) total revenue > marginal cost. C) marginal revenue > average revenue. D) price = marginal revenue.
If the price of Big Mac is $3.61 in the U.S. and 3.405 € in France, and PPP holds, what is the value of the euro in dollars that is implied by The Economist magazine's Big Mac index?
A) $1.060 B) $0.943 C) $1.943 D) None of the above.