If a society is producing at a point along its production possibility frontier, then the society
A. is overallocating resources so efficiency is indeterminate.
B. is fully employing its resources so it must be achieving output efficiency.
C. is fully employing its resources, but not necessarily achieving output efficiency.
D. is underallocating resources so it must be inefficient.
Answer: C
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When a person throws a cigarette out of a car window and starts a brush fire, this is
A) an example of an external benefit. B) an example of an external cost. C) an example of a public good. D) an example of market power.
If the price in U.S. dollars for one Singapore dollar is 0.625 U.S. dollars, then the price in Singapore dollars for one U.S. dollar is:
a. 1.0 Singapore dollars. b. 0.625 Singapore dollars. c. 1.6 Singapore dollars. d. 0.375 Singapore dollars. e. 2.66 Singapore dollars.
The effect of Commodity Credit Corporation loan programs is to alter the quantity demanded of farm products as well as to increase the quantity supplied.
Answer the following statement true (T) or false (F)
If the required reserve ratio is 5 percent and the Federal Reserve sells $10,000 worth of bonds, the money supply can potentially
A. Increase by $50,000. B. Decrease by $200,000. C. Decrease by $500. D. Decrease by $50,000.