As an economy grows over a period of years, the production possibilities frontier tends to shift outward and society is able to afford more of all goods
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Fill in the blank: Producers will compare ________ benefits to ________ costs when considering how much output to produce
A) average; additional B) additional; additional C) additional; average D) average; average
Assume there is an increase in the number of consumers in the market for a good sold by perfectly competitive firms that are initially producing the profit-maximizing level of output. For the individual firm, this would result in:
A) a decrease in both price and the profit-maximizing quantity of output. B) a decrease in price and increase in the profit-maximizing quantity of output. C) an increase in both price and the profit-maximizing quantity of output. D) an increase in price and decrease in profit-maximizing quantity of output.
As a tax increases, the excess burden from increasing the tax grows faster than the corresponding tax revenue. This is the impetus behind _____
a. lump sum taxes b. the excess burden rule c. the Ramsey rule d. placing taxes only on the most inelastic goods
A clinic uses doctors and nurses optimally and is servicing the maximum number of patients given a limited annual payroll. The last doctor hired treated 1,600 extra patients in a year, while the last nurse hired treated 1,000 extra patients in a year. If doctors make $80,000 a year and nurses make $40,000 a year, then
A. the clinic is making the correct decision because doctors are more productive than nurses. B. the clinic could serve more patients by hiring fewer doctors and more nurses. C. the clinic could serve more patients by hiring more doctors and fewer nurses. D. the clinic is not making the correct decision because the additional patients per dollar spent on doctors is greater than the additional patients per dollar spent on nurses. E. both a and d.