As more of a good is produced, its opportunity cost tends to increase because resources are not equally efficient at producing all goods.
Answer the following statement true (T) or false (F)
True
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If the difference between the marginal benefit and the marginal cost of a good is as large as possible,
A) resources are being used with maximum efficiency. B) resources would create more value producing other goods and hence the production of this good should be decreased. C) more of the good should be produced. D) allocative efficiency has been attained. E) Both answers A and D are correct.
The command of World War II (1941–45)
(a) was more structured than that of World War I (1914–18) (WWI). (b) experienced the same unconstitutionality problems experienced during WWI. (c) was distinct from WWI in most ways. (d) did not involve rationing of goods and services, given the high unemployment of the period.
You have data for compensation of employees, proprietors' income, rental income, and net interest. Can you compute national income?
A) Yes, all of the components of national income are given. B) No, since data on indirect business taxes are missing. C) No, since data on corporate profits is missing. D) No, since data on the capital consumption allowance is missing. E) No, since net interest has not been adjusted for profits.
A trade imbalance occurs when:
A. exports from and imports to a country suddenly decline. B. a country does not import or export any goods or services. C. the quantity of imports equals the quantity of exports, but are large relative to total output. D. the quantity of a country's exports differs significantly from the quantity of imports.