One limitation of the production possibilities curve is that it is unable to tell us ______.
a. when we are operating efficiently
b. when we are operating inefficiently
c. the trade-off for producing more of one item
d. the best place to be on the curve
d. the best place to be on the curve
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If people have the same abilities, then
a. they cannot gain from trade. b. they can still gain from trade if they have different tastes. c. they can still gain from trade as long as they specialize in different activities. d. they can still gain from trade only if they are facing different absolute prices.
A rent ceiling set below the equilibrium rent
A) ensures the availability of enough low-rent apartments in a city. B) results in all renters and potential renters being better off. C) creates a situation in which the quantity demanded of housing is greater than quantity supplied. D) ensures that landlords earn a reasonable rate of profit on apartments. E) eliminates discrimination by landlords.
Other things constant, if the population decreases and GDP remains unchanged,
A) real GDP necessarily decreases. B) per capita GDP necessarily increases. C) per capita GDP necessarily decreases. D) real GDP necessarily increases.
The one feature of capital that makes it unlike most inputs is that
A. it is durable. B. it generates economic rents. C. it is nondepletable. D. it requires comparing cash flows across different periods.