Points lying _____________ the production possibilities curve represent greater, but unachievable levels of output with current inputs, than that at any point on the curve.
a. inside
b. along
c. outside
d. the midpoint of
e. at the axis of
c. outside
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An unexpected large increase in the price of crude oil is an example of a supply shock
Indicate whether the statement is true or false
In the above figure, the opportunity cost of moving from point D to point E is
A) 75 guitars. B) 55 guitars. C) 100 ukuleles. D) 100 guitars.
Consider a portfolio with three stocks, each with the same value. The three stocks have standard deviations of 20%, 40%, and 90%. The standard deviation of this portfolio is
a. no greater than 50%. b. less than 20%. c. exactly 40%. d. more than 90%.
Ginger and Maryann are lost in the jungle, where the only things to eat are mangoes and fish. Ginger can gather more mangoes per hour than Maryann and can also catch more fish per hour than can Maryann. Therefore:
A. Maryann should specialize in the activity for which she has a comparative advantage. B. Ginger should specialize in the activity for which she has an absolute advantage. C. there are no gains to specialization and trade for Maryann. D. there are no gains to specialization and trade for Ginger.