An economist claims that any point not on a production possibilities frontier cannot be best. What is his reasoning to support this?
A. A point inside the frontier implies that society is not facing up to the problem of scarcity.
B. A point inside the frontier limits growth, and growth is always a goal worth pursuing.
C. A point inside the frontier represents inflation, and inflation is a dangerous situation.
D. A point inside the frontier results in fewer goods, and more is always better.
E. A point inside the frontier is inefficient and represents wasted resources.
Answer: E
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
List the three possible ways the government can make adjustments, and the three possible ways the private sector can make adjustments, to an increase in the government's budget deficit
What will be an ideal response?
The inclusion of external costs in the decision making process determining equilibrium price and quantity leads to
A) lower priced items and increased quantity. B) lower priced items and a decline in quantity. C) higher priced items and increased quantity. D) higher priced items and a decline in quantity.
In perfect competition, a firm's economic profit is equal to __________
Fill in the blank(s) with the appropriate word.