Which of the following statements about a movement along the production possibilities curve in the above figure is FALSE?
A) An additional computer can be produced only if fewer televisions are produced.
B) The trade-off between computers and televisions is not constant.
C) Society cannot have more of both goods at the same time.
D) There are no opportunity costs involved in choosing one point on the curve over all other points.
D
You might also like to view...
In the long run, there is
A) a tradeoff between unemployment and inflation. B) a tradeoff between unemployment and natural unemployment. C) a tradeoff between unemployment and real GDP. D) no tradeoff between unemployment and inflation. E) no tradeoff between fiscal policy and monetary policy.
A major objective of tax policy should be to
a. avoid distortions in resource allocation while raising revenue b. divert savings from the private to the public sector c. increase the government's ability to direct the economy d. supplement resources entering the country from foreign aid e. all of the above
In Figure 4-10 above, expansionary fiscal policy accommodated by the Fed can be pictured as a movement from points
A) A to D. B) A to C. C) D to B. D) B to D. E) A to B.
If for a firm P = minimum ATC = MC, then:
A. neither allocative efficiency nor productive efficiency is being achieved. B. productive efficiency is being achieved, but allocative efficiency is not. C. both allocative efficiency and productive efficiency are being achieved. D. allocative efficiency is being achieved, but productive efficiency is not.