Consider a graph of a production possibilities curve. If a producer is operating at an inefficient point, then that producer:

A. must be at an unattainable point on the production possibilities curve.
B. can produce more of one good without producing less of the other good.
C. must be specializing in activities for which it has a comparative advantage.
D. cannot produce more of one good without giving up some of the other good.


Answer: B

Economics

You might also like to view...

An income effect

A. is measured as the change in prices over time. B. is not possible when people are unemployed. C. requires interest rates to remain constant. D. is the change in the quantity demand, due to the fact that real income changes when prices change.

Economics

All individuals on the same line in an organization chart have similar levels of responsibility and authority in the organization

Indicate whether the statement is true or false

Economics

The aggregate production function is _____ because the rate of increase of output per capita diminishes as more capital is used

a. downward sloping b. convex from below c. concave from below d. inverted U-shaped

Economics

U.S. casinos employ about ________ people.

A. 10 million B. 340,000 C. 37,000 D. 1 million

Economics