In a production possibilities frontier model, a point ________ the frontier is productively inefficient
A) outside B) at either intercept of
C) inside D) along
C
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The current cost of a market basket of goods is $9,000 . The cost of the same basket of goods in the base year was $3,000 . The current price index is:
a. 900. b. 300. c. 166. d. 33.
According to the principle of diminishing returns, if all factors of production but one are held constant and if that one factor is doubled, then eventually output will most likely:
A. double too. B. less than double. C. more than double. D. remain unchanged.
Greater specialization within a country
A) increases risks to the country. B) is rarely beneficial. C) creates winners and losers and raises issues about fairness. D) evenly distributes benefits in the long run.
You have just read that Australia has suffered a drought, destroying its wheat crop for this year. The effect of this adverse supply shock on Australia would probably be
A. an increase in prices, an increase in nominal interest rates, but a decrease in real interest rates. B. a decrease in prices and a decrease in real interest rates. C. an increase in prices and an increase in real interest rates. D. a decrease in prices, a decrease in nominal interest rates, but an increase in real interest rates.