Figure 11-2
?
Using the information in Figure 11-2, which point or points represents an inefficient allocation of resources?
A. A
B. B
C. A and D
D. D
Answer: D
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Refer to Table 2-16. Estonia has a comparative advantage in the production of
A) cell phones. B) both products. C) lumber. D) neither product.
The calculation of potential output in the United States has been complicated recently by problems in
a. calculating unemployment. b. distinguishing real from nominal income. c. calculating a high-employment, or long-run average, level unemployment rate. d. measuring depreciation and, therefore, net national product.
Specialization in production is beneficial because
a. it allows everyone to have a job that they like. b. it permits people to expand production and achieve rates of output that would otherwise be unattainable. c. it allows everyone to be self-sufficient. d. it eliminates the need for the division of labor.
A country's production possibilities will grow if it
a. produces more guns than butter. b. lowers its opportunity costs. c. makes more trade-offs. d. increases its resources.