Exhibit 2-9 Production possibilities curve
Which of the following moves from one point to another in Exhibit 2-9 would represent an increase in economic efficiency?
A. Z to W.
B. W to Y.
C. W to X.
D. X to Y.
Answer: D
You might also like to view...
In the consumption function model, the 45-degree line represents where
A) the real disposable income is equal to zero. B) planned real saving is equal to zero. C) planned real consumption spending is equal to zero. D) planned real saving is greater than actual real savings.
As a result of moving more decision making from the periphery of the organization toward the center, typically
a. the flow of relevant information to the decision maker can be weakened b. the flow of relevant information from the decision should be enhanced c. the incentive structure for the decision maker should be strengthened d. incentive compensation at the periphery can be weakened
The spending multiplier effect is the result of a shift in the aggregate expenditures (AE) line
a. True b. False Indicate whether the statement is true or false
If a country experienced deflation, then
a. the nominal interest rate would be greater than the real interest rate. b. the real interest rate would be greater than the nominal interest rate. c. the real interest rate would equal the nominal interest rate. d. nominal GDP would be smaller than the money supply.