If an economy can produce more of one good without giving up any of another good, then the economy's current production point is inefficient
a. True
b. False
Indicate whether the statement is true or false
True
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The economy's marginal benefit curve for a public good is found by ________ for all individuals
A) vertically summing the marginal benefit curves B) vertically summing the total benefit curves C) horizontally summing the total benefit curves D) horizontally summing the marginal benefit curves
An intertemporal budget constraint is downward sloping due to ________
A) the trade-off between current and future consumption B) the law of diminishing marginal productivity C) the law of supply D) the law of demand
Which of the following statements best describes the production and allocation of resources after the United States entered World War II?
a. Government spending as a percentage of GNP during this period never exceeded the maximum level at the height of the Depression under Roosevelt's New Deal policies. b. Production shifted out closer to the production possibilities frontier, primarily as a result of technical change. c. Production shifted out toward the production possibilities frontier, primarily as a result of underutilized resources being utilized. d. Greater production of goods to support the war involved nominally higher incidents of disabling injuries in the workplace, yet not increases in the rates of disabling injuries.
In a recent article in USA Today, the price of gasoline rose over the past year from $3.50 to $4.00, a price hike of about 14.29 percent. Gasoline consumption over the past year declined by 10 percent. So, on the basis of this article, we can conclude
that A) The own-price elasticity for gasoline is nearly -0.70 B) The own-price elasticity for gasoline is -1. C) The own-price elasticity for gasoline is roughly -1.43. D) Can't tell; insufficient information.