BAE, a British defense company, has the contract to produce Tornado aircraft for the Royal Air Force. The BBC produces high-quality mystery shows for the British government. Both produce at the lowest possible cost
On a PPF with aircraft and mystery shows on the axes A) BAE and the BBC do not face increasing opportunity costs.
B) BAE and the BBC are achieving production efficiency.
C) BAE and the BBC are producing at a point outside the PPF.
D) the British government is operating outside its PPF.
B
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What is the effect of supply-side inflation on the short-run Phillips curve?
If an increase in the price of good X leads to a decrease in the demand for good Y, then:
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