A production possibilities curve with clothing and food on the axes shows that
I. A society can not have an unlimited amount of each good
II. For an efficient society, an increase in clothing production will necessitate a decrease in food production
III. A society will always produce the maximum amount of both clothing and food
A) I only
B) II only
C) III only
D) Both I and II
D) Both I and II
You might also like to view...
Your Social Security contributions accumulate in a personal account during your working years, creating a savings balance from which retirement, disability, and health benefits are later paid
Indicate whether the statement is true or false
If demand is inelastic and price is lowered, total revenue will
A. rise. B. fall. C. stay the same. D. possibly rise or possibly fall.
Which of the following is a main limitation of GDP?
A. GDP figures are grossly inaccurate due to sampling errors. B. The real definition of what is and is not included in GDP is unclear. C. GDP includes some products, which by their very nature are bad products, such as military weapons. D. GDP is not a good measure of a nation's overall welfare.
Answer the following questions true (T) or false (F)
1. Innovations, including new products and services, in financial markets and institutions have made the job of defining the money supply easier. 2. Most U.S. currency held outside the U.S. banking system is held by foreigners. 3. A person's wealth is the same as his income.