In a PPF graph of goods X and Y, points that lie beyond (to the right of) the PPF represent combinations of the two goods that are currently unattainable
Indicate whether the statement is true or false
True
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Describe how Keynesian economics is a cyclical phenomenon. Is it leading, lagging, or coincident? Procyclical or countercyclical?
What will be an ideal response?
One implication of the fact that profit functions are convex in prices is that firms will always prefer:
a. stable input and output prices. b. input and output prices that fluctuate about a given level. c. stable input prices and fluctuating output prices. d. fluctuating input prices and stable output prices.
Diminishing marginal returns occurs when:
a. the marginal product of a variable input diminishes with each additional unit of the input. b. the marginal product of a variable input increases with each additional unit of the input. c. the marginal product of a fixed input diminishes with each additional unit of the input. d. the marginal product of a fixed input increases with each additional unit of the input.
An open market __________ by the Fed increases the money supply; a(n) __________ in the required reserve ratio increases the money supply
A) sale; decrease B) purchase; increase C) sale; increase D) purchase; decrease