A production possibility frontier illustrates what ideas about economic scarcity?
A) that limits to production and consumption exist
B) that tradeoffs are inevitable
C) that resources must be used for production and consumption to take place
D) all of the above
Answer: D) all of the above
You might also like to view...
The EU countries were prompted to seek closer coordination of monetary policies and greater exchange rate stability in order
A) to enhance Europe's role in the world monetary system. B) to turn the European Union into a truly unified market. C) both to enhance Europe's role in the world monetary system and to turn the European Union into a truly unified market. D) both to turn the European Union into a truly unified market and to counter the rise of Japan in international financial markets. E) to homogenize all European cultures.
An indication that Insurance companies anticipate adverse selection is
a. they require a deductible b. they do not classify clients into different risk types according to their claim history c. they do not classify clients into different risk types according to pre-existing conditions d. they do not require a co-payment
A perfectly competitive industry is in long-run equilibrium. If demand for the product decreases, we can expect:
A. firms to enter the market. B. firms to exit the market. C. no change in the number of firms in the market. D. There is not enough information to tell what will happen to the number of firms in the market.
Assuming a reserve ratio of 25 percent, if a bank receives $100,000 in deposits how much can the bank loan out?
A. $100,000 B. $400,000 C. $25,000 D. $75,000