The above figure shows the production possibility frontier for an economy. The point or points that are attainable and production efficient are
A) points B and C.
B) points A, B, and C.
C) point E.
D) points A, B, C, and D.
E) points A and D.
B
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Inflation caused by a rise in the prices of inputs is referred to as ________.
A. hyperinflation B. unexpected inflation C. demand-pull inflation D. cost-push inflation
The FDIC was created because
A) the Fed kept the required reserve ratio too low. B) banks failed to create money the way the Fed wanted them to. C) people worried about bank failures after World War I, even though very few banks actually failed. D) there were so many bank failures in the 1930s.
An agrarian system refers to
(a) the pattern of land ownership. (b) the type of crops grown. (c) the processing of agricultural commodities. (d) an economy that has no industry.
A subsidy may be used as a corrective device in the case of a positive externality because it will __________ marginal private benefits and __________ demand.
A. increase; decrease B. increase; increase C. decrease; decrease D. decrease; increase