A point outside a production possibilities curve reflects
a. efficiency
b. specialization
c. inefficiency
d. unemployment
e. an unattainable choice
E
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The production possibilities frontier model assumes all of the following except
A) the level of technology is fixed and unchanging. B) any level of the two products that the economy produces is currently possible. C) labor, capital, land and natural resources are fixed in quantity. D) the economy produces only two products.
Individuals rationally choosing career paths should weigh the preparation costs to the potential incomes generated within those careers
Indicate whether the statement is true or false
Suppose the Fed reduces the reserve ratio from 0.25 to 0.20 and the current level of demand deposits is $10,000 . By how much would excess reserves change?
a. Excess reserves would increase by $2,500. b. Excess reserves would increase by $2,000. c. Excess reserves would decrease by $500. d. Excess reserves would increase by $500. e. Excess reserves would increase by $4,500.
Scott's Painting Company paints houses. Since Scott's business does not have the name recognition of some of the bigger painting companies, Scott advertises a "Five-Year Money Back Guarantee" to indicate to buyers that his service is of high quality. This guarantee is an example of
a. screening. b. signaling. c. the seller's curse. d. the principal-agent problem.