Exhibit 2-4 Production possibilities curve data
A
B
C
D
E
Capital goods 0
10
20
30
40
Consumer goods200
180
140
80
0
According to the data in Exhibit 2-4, a total output of 140 units of consumer goods and 10 units of capital goods would:
A. be unobtainable in this economy.
B. be an efficient way of using the economy's scarce resources.
C. result in the maximum use of the economy's labor force.
D. result in a less than maximum rate of growth for this economy.
Answer: D
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The value of a household's assets minus the value of its liabilities is called
A) wealth. B) income. C) debt. D) stock.
New cars are normal goods. What will happen to the equilibrium price of new cars if the price of gasoline rises, the price of steel falls, public transportation becomes cheaper and more comfortable, auto-workers accept lower wages, and automobile insurance becomes more expensive?
a. Price will rise. b. Price will fall. c. Price will stay exactly the same. d. The price change will be ambiguous.
Refer to the accompanying figure. Moving from demand curve D1 to demand curve D2 illustrates a(n):
A. decrease in demand. B. decrease in quantity demanded. C. increase in demand. D. increase in quantity demanded.
Which of the following is a liability of a bank and an asset of its customers?
a. deposits of its customers and loans to its customers b. deposits of its customers but not loans to its customers c. loans of its customers but not the deposits of its customers d. neither the deposits of its customers nor the loans to its customers