A nation can produce at a point outside its PPF
A) when it trades with other nations.
B) when it produces inefficiently.
C) when its PPF is bowed out.
D) never.
D
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If the supply curve illustrates the quantities producers plan to sell at given prices, and the demand curve illustrates the quantities consumers plan to buy at given prices, then the plans of producers and consumers are fully coordinated at the point
where A) the supply curve lies above the demand curve. B) the supply curve intersects the demand curve. C) the demand curve lies above the supply curve. D) the amount of a good needed by consumers exactly equals the amount supplied by producers.
When the unemployment rate is low, the impact of additional spending on real output will
a. be larger than when the unemployment rate is high. b. be smaller than when the unemployment rate is high. c. be the same as when the unemployment rate is high. d. place downward pressure on the general level of prices, leading to deflation.
A decrease in the price of pizza will lead to a(n):
A. increase in the demand for pizza. B. decrease in the number of consumers. C. decrease in the quantity of pizza demanded. D. increase in the quantity of pizza demanded.
The risk spread:
A. is always constant. B. should have an inverse relationship with the bond's yield. C. should have a direct relationship with the bond's price. D. is also known as the default-risk premium.