A production possibilities curve indicates the
A. Maximum combinations of goods and services an economy can produce given its available resources and technology.
B. Average combinations of goods and services an economy can produce given its available resources and technology.
C. Maximum combinations of goods and services an economy can produce given unlimited resources.
D. Combinations of goods and services an economy is actually producing.
Answer: A
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The identity stating that the total amount spent on final output equals the amount received for final output is known as the
A) equation of exchange. B) circular flow identity. C) identity equation. D) fundamental law of economics.
Refer to Table 2-15. What is George's opportunity cost of cultivating a garden?
A) one-half of a garden cultivated B) two lawns mowed C) two-thirds of a garden cultivated D) one and a half lawns mowed
Managers will use ________ probabilities to estimate the likelihood of a successful launch of a new brand of peanut butter.
A) relative B) objective C) known D) subjective
Firms operating in competitive markets have little choice but to innovate
a. True b. False Indicate whether the statement is true or false