The production possibilities frontier:
A. can show all possible combinations of goods but not tell us which combination society should choose.
B. can show the best combination of goods which society should choose.
C. cannot show all possible combinations of goods because society is typically inefficient.
D. can show us which possible combinations of goods society should choose, but cannot tell us which points will be inefficient.
A. can show all possible combinations of goods but not tell us which combination society should choose.
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For a consumer, a budget line shows the boundary between
A) what is desired and what is not desired. B) what is needed and what is not needed. C) what is affordable and what is not affordable. D) what is available and what is not available.
The ________ effect can be divided into the ________ effect and the ________ effect
A) marginal; substitution; price B) income; substitution; price C) substitution; price; income D) price; substitution; income
If Second National Bank has more rate-sensitive liabilities then rate-sensitive assets, it can reduce interest rate risk with a swap that requires Second National to
A) pay fixed rate while receiving floating rate. B) receive fixed rate while paying floating rate. C) both receive and pay fixed rate. D) both receive and pay floating rate.
The law of increasing opportunity costs implies that a society's production possibilities curve will be a straight line
a. True b. False Indicate whether the statement is true or false