Consider a production possibility frontier with books and tables. A combination of 1000 books and 500 tables is on the frontier. Which of the following are true?
i. Production of 700 books and 400 tables is attainable but inefficient.
ii. Production of 1000 books and 600 tables is unattainable.
iii. Production of 500 books and 1000 tables is inside the frontier.
A) i, ii and iii B) i only C) i and iii D) ii and iii E) i and ii
E
You might also like to view...
When the price level increases, aggregate planned expenditure decreases, which leads to
A) a rightward shift of the aggregate demand curve. B) neither a movement along nor a shift of the aggregate demand curve. C) a downward movement along the aggregate demand curve. D) an upward movement along the aggregate demand curve. E) a leftward shift of the aggregate demand curve.
The CPI bias arises from all of the following items except ________
A. the introduction of new goods and services B. the improved quality of goods C. the goods and services bought by poor people D. consumers' responses to price changes
Assume that a rise in petroleum prices increases the cost of milk transportation from the dairies to the market. We can expect the long-run supply curve in this industry to shift downward
Indicate whether the statement is true or false
Suppose a U.S. resident buys a car from a car maker in Japan. This transaction will:
a. have a negative effect on Japan's balance of trade in merchandise. b. have a negative effect on the U.S. balance of trade in merchandise. c. have a positive effect on the U.S. balance of trade in merchandise. d. bring money into the United States. e. have no effect on Japan's balance of trade in merchandise.