If the United States can increase its production of automobiles without decreasing its production of any other good, the United States must have been producing at a point
A) within its PPF.
B) on its PPF.
C) beyond its PPF.
D) None of the above is correct because increasing the production of one good without decreasing the production of another good is impossible.
A
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The fundamental identity of national income accounting is
A) total production = total income - total expenditure. B) total production = total income + total expenditure. C) total production = total income = total expenditure. D) total production = total income/total expenditure.
Using marginal analysis, explain why many restaurants and coffee shops offer low-cost refills on beverages (for example, a shop may charge $1.50 for a cup of coffee and only $.50 for a refill).
What will be an ideal response?
The largest component of national income is:
a) compensation of employees. b) rents. c) interest. d) corporate profits.
If a hurricane were to wipe out the majority of the eastern seaboard in the United States:
A. neither the short-run nor long-run aggregate supply curves would be affected. B. only the long-run aggregate supply curve would shift left. C. only the short-run aggregate supply curve would shift left. D. the long-run and short-run aggregate supply curves would both shift left.