A situation in which some resources are NOT fully utilized is represented in a production possibilities frontier diagram by
A) any point on either the horizontal or the vertical axis.
B) the midpoint of the production possibilities frontier.
C) a point outside the production possibilities frontier.
D) a point inside the production possibilities frontier.
D
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Discretionary fiscal policy is defined as fiscal policy
A) left to the discretion of military authorities. B) initiated by an act of Congress. C) initiated by a Presidential proclamation. D) triggered by the state of the economy. E) with multiplier effects.
The figure above illustrates the problem of overcrowding and external costs experienced during the summer months in the state park
If the market is unregulated, in equilibrium the external cost of visiting the state park is given by the distance between A) points H and G. B) points I and F. C) points F and G. D) points G and K.
Suppose Abe is allocating his entire income and he receives 100 units of utility per dollar from the tenth slice of pizza and 200 units of utility per dollar from his second soda
Is Abe maximizing his utility? Should Abe change his consumption of pizza and soda?
A risk-free rate can be measured by
A) the rate of inflation. B) the rate on corporate bonds. C) the Federal Reserve's discount rate. D) a rate of a Treasury security.