If, in a given economy, production is taking place at a point inside the production possibility frontier:
a. resource allocation is technically and allocatively efficient.
b. resource allocation is technically efficient but allocatively inefficient.
c. resource allocation is technically inefficient and allocatively efficient.
d. resource allocation is technically and allocatively inefficient.
d
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Economic agents who borrow funds are known as:
A) receivers. B) debtors. C) investors. D) creditors.
The difference between bid (buying) rates and ask (selling) rates is called the
A) profit. B) arbitrage. C) spread. D) forward transaction.
Which of the following is true regarding opportunity cost?
a. Opportunity cost of engaging in some activity, such as attending opera, will be same for different people. b. Opportunity cost has nothing to do with scarcity and time. c. Opportunity cost may vary with circumstances. d. Opportunity cost of the chosen item is the value of all the alternatives that are foregone.
A surplus exists
A. when quantity supplied is greater than quantity demanded. B. in equilibrium. C. when quantity supplied is less that quantity demanded. D. at the market clearing price.