The best output or the optimal production of the nation is:
A. A combination of products at the midpoint of the production possibilities curve
B. A combination of products at the two endpoints of the production possibilities curve
C. Determined by equalizing the marginal benefits and marginal costs of each product
D. The production combination where the opportunity costs are minimized
Answer: C
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A higher inflation rate can lead to lower unemployment if ________ mistakenly expect the inflation rate to be lower than it turns out to be
A) workers, but not employers B) employers, but not workers C) both workers and employers D) neither workers nor employers
Which of the following is an example of foreign portfolio investment?
A) the purchase of a U.S. mutual fund by a U.S. citizen B) the purchase of a Japanese factory by a Korean citizen C) the purchase of a U.S. stock by a U.S. citizen D) the purchase of a U.S. Treasury bond by a German citizen
What role do households play in the capital market? What role do firms play?
What will be an ideal response?
When expectations of inflation are revised upward, the short-run Phillips curve: a. shifts rightward. b. becomes steeper. c. shifts leftward
d. becomes flatter.