A point outside the production possibilities curve [PPC]:
a. represents inefficient use of resources.
b. represents the prevalence of unemployment.
c. is attainable if all resources are used efficiently.
d. represents more resources than are currently available.
e. will never be attainable, even if the quantity of resources increases.
d
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Refer to Figure 15-16. Suppose the government regulates this industry in order to remove the inefficiency implied by the behavior of the profit-maximizing owners
If regulators require that the firm produces the economically efficient output level, what is this level and what price will be charged? A) Q3 units; P3 B) Q1 units; P1 C) Q1 units; P4 D) Q4 units; P6
The opportunity cost of a resource
a. includes both explicit and implicit cost b. includes explicit cost only c. includes implicit cost only d. is equal to the market price of the resource e. is not related to the market price of the resource
Which of the following is an example of the economies of scale argument for increased profits for large financial holding companies?
A. Financial holding companies are well diversified so risk is reduced. B. Financial holding companies offer a wide array of services under one name. C. Financial holding companies need only one CEO, one Board of Directors, and one accounting system regardless of size. D. The profitability of financial holding companies does not rely on one particular line of business.
If Corinne's income is reduced to zero after she loses her job, her ________ will be greater than zero and her ________ will be less than zero.
A. consumption; saving B. saving; investment C. taxes; consumption D. consumption; expenses