If an economy is producing on its PPF, then it is definitely achieving
A) both production and allocative efficiency.
B) only production efficiency, but it definitely is not achieving allocative efficiency.
C) only allocative efficiency, but it is definitely not achieving production efficiency.
D) neither production nor allocative efficiency.
E) only production efficiency.
E
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Interest is considered a(n)
A) explicit cost when the firm pays a bank to borrow money. B) implicit cost when the firm owner uses his or her own funds to buy capital. C) return to entrepreneurship if the firm owner uses her own funds to buy capital. D) form of depreciation if the cost of borrowing increases. E) Both answers A and B are true.
If the purchasing power of a dollar is less than the purchasing power of the Mexican peso, purchasing power parity would predict that
A) in the short run, the dollar will appreciate relative to the peso to equalize the purchasing power of the dollar and the peso. B) in the short run, the dollar will depreciate relative to the peso to equalize the purchasing power of the dollar and the peso. C) in the long run, the dollar will appreciate relative to the peso to equalize the purchasing power of the dollar and the peso. D) in the long run, the dollar will depreciate relative to the peso to equalize the purchasing power of the dollar and the peso.
Adding members to a military alliance _____
a. will always strengthen the alliance b. will cause the alliance to dissolve c. might weaken the alliance d. will always weaken the alliance
Free trade with other countries allows poor nations the opportunity to exploit their comparative advantage in agricultural goods.
Answer the following statement true (T) or false (F)