Increasing opportunity while moving along a production possibility frontier is due to
What will be an ideal response?
the fact that resources are not equally productive in alternative uses
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What is the difference between a fixed exchange rate system and a managed float exchange rate system?
What will be an ideal response?
For a competitive firm, if at least some portion of its short-run average cost curve lies below the price of the product, we can conclude that the firm
A. is earning a profit at the profit maximizing output level. B. is incurring short-run losses. C. is earning zero economic profits. D. is going to shut down.
An unplanned economy operating under laissez-faire
A. allocates resources by market supply and demand. B. cannot respond to basic questions about production and distribution. C. shows breakdowns with frequent surpluses and shortages. D. allocates goods and services under government subsidy.
In the circular flow model, firms purchase in the
a. money market and sell in the product market b. product market and sell in the resource market c. resource market and sell in the money market d. product market and sell in the product market e. resource market and sell in the product market