When an economy is operating with maximum efficiency, the production of more of commodity A will entail the production of less of commodity B because
A. resources are specialized and cannot be easily reallocated.
B. resources are limited.
C. the structure of demand is fixed at any point in time.
D. material wants are insatiable.
Answer: B
You might also like to view...
Other things being equal, along an aggregate demand curve, a higher price level is associated with
A) a lower nominal GDP. B) a higher real GDP. C) higher income levels. D) a lower real GDP.
The key factors in raising standards of living in low-income countries have been increases in
A) capital accumulation and the money supply. B) income and government ownership of resources. C) foreign aid and population. D) technology and knowledge.
The opportunity cost of going to an outdoor music festival is
A) the value of the time spent at the festival. B) zero because there are no overhead costs for an outdoor festival. C) equal to the highest value of an alternative use of the time and money spent on the festival. D) the enjoyment you receive from going to the festival. E) the cost of the festival ticket only.
In the game in Scenario 13.6, what is the Nash equilibrium?
A) The strategy pair associated with -$100, -$1. B) The strategy pair associated with $2, -$0.5. C) The strategy pair associated with $1, -$1. D) The strategy pair associated with -$0.5, -$0.5. E) There is no Nash equilibrium in pure strategies.