Along a production possibilities curve, an increase in the production of one type of good can be accomplished only by:
A. decreasing the price of the other type of good.
B. increasing the production of the other type of good.
C. holding constant the production of the other type of good.
D. decreasing the production of the other type of good.
Answer: D
You might also like to view...
A firm that engages in price discrimination must be able to identify the preferences of every
customer it serves. Indicate whether the statement is true or false
In 1992, Britain and Italy __________ the European Monetary System and __________ against the other major European currencies
A) joined; fixed their currency B) joined; let their currency float C) left; fixed their currency D) left; let their currency float
A job leaver is an individual
A) in the labor force whose employment was involuntarily terminated. B) who used to work full time but left the labor force and has now reentered it looking for a job. C) in the labor force who quits voluntarily. D) who has never held a full-time job lasting two weeks or longer but is now seeking employment.
Explain how the free-market mechanism adjusts prices so that resource allocation is economically efficient