Efficient production implies that it is:
A) possible to produce more of all goods and services.
B) it is possible to produce more of one good without producing less of another.
C) not possible to produce more of one good without producing less of another good.
D) producing at a combination of goods which lies between the production possibilities curve and the origin.
Ans: C) not possible to produce more of one good without producing less of another good.
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In the summer 2012 the lobster catch in Maine was especially large, but instead of celebrating the fisherman were suffering from a lower total revenue
(Source: New York Times, July 28, 2012 ) We learn from the article that despite the larger quantity of lobster caught, the total revenue of the fisherman decreased. This fact means that the demand for lobster is A) unit elastic. B) elastic. C) inelastic. D) perfectly elastic.
Marginal product is represented by:
A. the x-axis of the total production curve. B. total product minus the total cost. C. the slope of the total production curve. D. total revenue minus total cost.
Assume Congress enacts a $10 billion decrease in spending and a $10 billion decrease in tax revenue. The result of this balanced-budget approach is a:
a. $10 billion decrease in aggregate demand. b. $20 billion decrease in aggregate demand. c. $100 billion decrease in aggregate demand. d. $10 billion increase in aggregate demand.
Japan, Germany, France, Britain, and the United States meet to try to coordinate their economic policies. This informal association is called:
A. the Group of Five. B. the OECD C. the IMF. D. the WTO.