Points that lie beneath the production possibilities curve are:
A. unattainable but efficient.
B. attainable and efficient.
C. attainable but inefficient.
D. unattainable and inefficient.
Answer: C
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In analyzing the operation of a firm, an economist assumes the firm wants to
A) maximize total sales. B) maximize total revenue. C) maximize total production. D) maximize total profits.
For each watch Denmark produces, it gives up the opportunity to make 50 pounds of cheese. Germany can produce one watch for every 100 pounds of cheese it produces. Which of the following is true concerning production possibilities curves in both countries?
a. The slopes of the countries' production possibilities frontiers cannot be determined unless the number of workers in each country is known. b. The countries' production possibilities frontiers have the usual bowed-out shape. c. On a graph with cheese on the vertical axis, the slope of Germany's production possibilities frontier is everywhere equal to 1/100. d. On a graph with cheese on the vertical axis, the slope of Germany's production possibilities frontier is steeper than Denmark's. e. On a graph with cheese on the vertical axis, the slope of Germany's production possibilities frontier is everywhere equal to negative 1/100.
The 45-degree line splitting the distance between the axes in a Lorenz Curve is the:
a. line of equal share of expenditure. b. line of equivalent income. c. line of income equality. d. line of average income. e. line of absolute inequality.
To have significant foreign direct investment, a developing country ought to have a stable system of property rights
a. True b. False Indicate whether the statement is true or false