Judging from the production possibilities curve, the production of 5 units of housing and 20 units of food would be _____.
a. efficient
b. presently unattainable
c. inefficient
d. a sign of growth
c. inefficient
You might also like to view...
Suppose that the Fed implements expansionary monetary policy that raises aggregate demand, but individuals incorrectly anticipate the policy measure (bias downward). According to new classical theory, in the short run the price level would ____________ and Real GDP would ______________. In the long run, new classical theory would predict that the price level would ___________compared to its
original long-run equilibrium level and that Real GDP would ____________. A) rise; decline; rise; remain unchanged B) rise; rise; rise; remain unchanged C) rise; decline; remain unchanged; rise D) fall; rise; remain unchanged; rise
Which statement is true?
A. The monopolist usually operates at the minimum point of its ATC.
B. Nearly all monopolies are very large firms.
C. Most natural monopolies produce agricultural products or natural resources.
D. None of these statements are true.
Suppose a company increases production from a point where marginal cost equals average total cost to a point where marginal revenue and marginal cost are equal. Is it a good idea for the company to do this? Why?
A. No, average total costs have increased which means the company is not minimizing losses. B. Yes, because average variable costs are always less than average total costs. C. No, the previous level of output was the most efficient because it had the lowest average total cost. D. Yes, even though the previous level of output had minimized the average total cost, there was still profit to be earned by producing additional units.
In economics, the planning horizon is defined as
A) one year for every firm. B) the longest time period over which the firm can make decisions. C) the period of time for which technology is fixed. D) the long run, during which all inputs are variable.