If a given production combination is efficient, then it must be:
A. below the production possibilities curve.
B. on the production possibilities curve.
C. above the production possibilities curve.
D. either an attainable or unattainable point.
Answer: B
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An increase in the inflation rate of one country relative to another country will probably cause
A) an increase in exports for the inflating country. B) a balance of trade deficit for the inflating country. C) a current account surplus for the inflating country. D) an increase in the amount of official reserves held by the inflating country's central bank.
An advance in technology which increases labor productivity will shift the:
a. labor demand curve to the left. b. MFC curve to the left. c. MP curve downward. d. labor demand curve to the right. e. product demand to the right.
If the required reserve ratio, m, is 20 percent, then the oversimplified money multiplier is
A. 10 B. 5 C. 4 D. 2
Over recent years, economists holding monetarist views have replaced their call for a monetary rule with a call for:
A. artful Fed management of interest rates. B. inflation targeting. C. nominal GDP targeting. D. inflationary and recessionary gap analysis.