The production possibilities frontier represents
A) all combinations of consumption and leisure for fixed output.
B) all equally affordable combinations of consumption and leisure for a given wage.
C) all technologically feasible combinations of consumption and leisure.
D) all equally liked combinations of consumption and leisure.
C
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If monetary policy must be used to set the market equilibrium value of the exchange rate equal to the official value, it:
A. is no longer available to stabilize the domestic economy. B. will be unable to stabilize the market equilibrium value of the exchange rate. C. will increase the rate of growth in the economy. D. will simultaneously stabilize the domestic economy.
Changes in government spending and/or taxes as the result of legislation is called:
a. open market operations of the Federal Reserve. b. discretionary fiscal policy. c. balanced budget operations. d. discretionary monetary policy.
A decrease in the price of a currency in terms of another under a flexible exchange rate regime is called:
a. capital flight. b. depreciation. c. revaluation. d. devaluation. e. currency adjustment.
When the Fed wants to increase the US money supply, it will order the US Mint to print more currency
a. true b. false