From any point within the production possibilities frontier,
A) the only way to increase production of one good is to decrease production of the other.
B) it is possible to increase both people's utility.
C) it is possible to increase output of both goods.
D) any move will necessarily decrease production of some good.
C
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The United States is an example of a mixed economy.
Answer the following statement true (T) or false (F)
Inflation is
A) a decline in the total purchasing power of an economy. B) a decrease in the amount of other goods that a unit of money will purchase. C) a fall in people's real incomes. D) an increase in the cost of living. E) all of the above.
Refer to the above figure. If government sets the maximum legal price of gasoline at $2 per gallon, then the $2 limit acts as
A) a price floor. B) a price ceiling. C) an equilibrium price. D) a just price.
Which of the following statements is TRUE?
A) The long-run aggregate supply curve is upward sloping. B) The long-run aggregate demand curve is upward sloping. C) The short-run aggregate supply curve is vertical. D) The long-run aggregate supply curve is vertical.