Refer to Figure 2. If this economy moved from point C to point E,
a. it still would not be producing efficiently.
b. it was inefficient before but now it is producing efficiently.
c. it would be producing more barrels and more bathtubs than at point C.
d. It is not possible for this economy to move from point C to point E without additional resources.
Ans: a. it still would not be producing efficiently.
You might also like to view...
The natural rate of unemployment:
A. is typically zero. B. is the normal level of unemployment in an economy in the long run. C. is constant over time. D. None of these is true.
Consumers will ________ interest-sensative consumption spending, when interest rates are higher
Fill in the blank(s) with the appropriate word(s).
For the most part, trade between many countries:
A. is entirely unregulated or free. B. causes the well-being of some nations to win and others to lose. C. is regulated or restricted in some way. D. is free, with the notable exception of China.
A firm will continue to produce in the short run even though economic profits are negative as long as
A. it earned positive economic profits last year. B. the amount of the loss is no greater than the amount of fixed cost. C. it has fixed obligations to pay. D. MC = MR.