Exhibit 2-17 Production possibilities curve
In Exhibit 2-17, if countries A and B currently have the same production possibilities curve (PPC) as given in the figure, but this year country A locates at point A on its PPC and country B locates at point B on its PPC, then country A:
A. is more efficient than country B.
B. will grow at a faster rate than country B.
C. will grow at a slower rate than country B.
D. is producing more capital goods than country B.
Answer: C
You might also like to view...
In general, the costs tariffs and quotas impose on consumers are
A) large in total and large per person. B) small in total but relatively large per person. C) large in total but relatively small per person. D) small in total and small per person.
If the short-run aggregate supply curve is shifting right:
a. the short-run Phillips curve is shifting left. b. the short-run Phillips curve is shifting right. c. the long-run Phillips curve is shifting right. d. the long-run Phillips curve is shifting left.
A pack of chocolates purchased by Monica from a shop is an example of a _____
a. merit good b. club good c. public good d. private good
The price indexes that are alternatives to the CPI are ________.
A) unbiased CPI and the unbiased GDP deflator B) the GDP deflator and the chained price index for consumption C) the chained price index for consumption and the CPI deflator D) the core GDP deflator and the CPI deflator E) the GDP deflator and the CPI deflator