If an economy is producing on its production possibility frontier but is not producing what people want, the economy
A. is not achieving output efficiency.
B. is producing at more than one point on the production possibility frontier.
C. is not being productively efficient.
D. is experiencing technological advancement.
Answer: A
You might also like to view...
If the per capita income of a country is growing at 3.5 percent per year, approximately how long will it take for that income to double?
a. 20 years b. 25 years c. 35 years d. 70 years
According to the Keynesian model, in what ways will expansionary fiscal policy stimulate aggregate demand?
If the government decides to change the level of government spending, what happens to the value of the multiplier?
A. It becomes larger. B. It becomes smaller. C. It does not change. D. It is impossible to predict.
On most days the price of a rose is $1 and 80 roses are purchased. On Valentine's Day the demand increases so that the price of a rose rises to $2 and 320 roses are purchased. Therefore, the price elasticity of
A) demand for roses is about 1.8. B) demand for roses is about 0.55. C) supply of roses is about 1.8. D) supply of roses is about 0.55.