Refer to the above figure. If the farmer is producing 4,000 bushels of beans and 38,000 bushels of wheat, then we know the farmer
A) is using resources efficiently.
B) is producing too much wheat.
C) is inefficient because point a is the most efficient point on the curve.
D) must be using more resources than were assumed available in constructing the graph.
D
You might also like to view...
In the basic Keynesian model, a tax increase:
A. increases short-run equilibrium output. B. reduces potential output. C. increases potential output. D. reduces short-run equilibrium output.
Assuming all else equal, if the Fed is expected to adopt a contractionary monetary policy, ________
A) labor demand will increase B) inflation expectations will increase C) the long-run real interest rate will increase D) labor supply will increase
The money aggregate M1 consists of
A) currency and savings accounts. B) currency and checking deposits, including traveler's checks. C) only checking deposits and time deposits. D) checking accounts, savings accounts and Treasury bills.
Which of the following statements is false?
A. The Treasury bond information published under the column heading "Yield" is based on the ask price of the bond. B. The Treasury bond information published under the column heading "Yield" is based on the assumption that the bond is held to maturity. C. The Treasury bond information published under the column heading "Bid" indicates the price a buyer will pay if he buys the bond. D. The Treasury bond information published under the column heading "Bid" is the price a buyer will receive if she sells the bond.