Points outside the production possibilities frontier represent
a. unemployment of resources
b. inefficient use of resources
c. combinations that are attainable only if all resources are used fully and efficiently
d. currently unattainable combinations of outputs
e. the only currently attainable combinations from which society must choose
D
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Refer to the Article Summary. By marketing to pet owners, hotel companies like Klimpton, Choice, and W are trying to set themselves apart from competing hotel companies. This is an example of
A) product differentiation. B) defending a brand name. C) legally enforcing a trademark. D) blocking entry into the market.
For a given level of equilibrium GDP, a tight-money/easy-fiscal policy mix compared with easy-money/tight-fiscal policy mix implies a
A) lower interest rate. B) lower level of investment. C) higher level of taxation. D) lower level of government expenditures.
In its most ideal form, a price system allows
A) firms to act in such a way that they eliminate scarcity. B) consumers to satisfy all their wants. C) resources to move from lower-valued uses to higher-valued uses through voluntary exchange. D) government policy makers to allocate resources to the uses which they consider to be in the best interests of society.
Making a loan is generally:
A. less risky and more potentially rewarding than buying stock. B. more risky and less potentially rewarding than buying stock. C. less risky and less potentially rewarding than buying stock. D. more risky and more potentially rewarding than buying stock.