What does a consumption possibilities frontier represent?
The combinations of output that an economy can consume.
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Since firms within a monopolistically competitive industry set output where marginal revenue is equal to marginal cost, the size of the fixed entry cost does not impact the equilibrium price.
Answer the following statement true (T) or false (F)
"The slope of the demand curve gives the elasticity of demand." Do you agree or disagree? Why?
What will be an ideal response?
When the balance of trade is in balance, we know with certainty that
A) the value of all debit transactions equals the value of all credit transactions. B) the value of exports of goods equals the value of imports of goods. C) the value of capital exports equals the value of capital imports. D) the value of exports of goods and services equals the value of imports of goods and services.
An increase in the money supply is more likely to be inflationary when
a. the economy is at less than full employment. b. the economy is at full employment. c. a surplus government budget exists. d. velocity is decreasing.