Suppose the nation is producing at a point on its PPF. If the marginal cost of producing one more computer is greater than the marginal benefit, the nation is producing
A) too few computers to be allocatively efficient.
B) too many computers to be allocatively efficient.
C) the correct number of computers to be allocatively efficient.
D) at the point of allocative efficiency.
E) More information is needed to determine if the nation is or is not producing at the allocatively efficient point.
B
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The central question in economics is how to:
a. deal with the problem of scarcity. b. change government economic policy. c. change people's wants to match their needs. d. manage money and become wealthy.
Suppose that reducing inflation by 2 percentage points would cost a country 5 percent of its annual output. This country's sacrifice ratio is
a. 0.4. b. 1.5. c. 2.5. d. 5.0.
Which of the following is NOT a quantity-setting oligopoly model?
A. Bertrand B. Cournot C. Stackelberg D. All of the choices are quantity-setting models.
If inflationary expectations increase, the Phillips curve will
A. become upward sloping. B. shift to the right. C. become vertical. D. shift to the left.