An efficient allocation of resources is demonstrated by a point
A. above the production possibilities frontier.
B. below the production possibilities frontier.
C. on the production possibilities frontier.
D. near the middle of the production possibilities frontier.
Answer: C
You might also like to view...
An example of a government policy to enhance technological progress is:
A. the provision of publicly-funded education. B. government support for basic research. C. the construction of an interstate highway system. D. maintaining a well-functioning legal system.
Suppose the economy is on the intermediate range of the aggregate supply curve. Which of the following would reduce both real GDP and the price level?
a. A decrease in aggregate supply. b. An increase in aggregate supply. c. A decrease in aggregate demand. d. An increase in aggregate demand.
Economists use the term "business cycle" to refer to
a. the growth of small businesses into major corporations. b. changes in products that occur from improved technology. c. fluctuations in the level of real output and employment. d. periods of increases and decreases in the rate of inflation.
The production possibilities curve for the nation of Economania shifts to the right. This could have been caused by:
A. a decrease in Economania's capital stock. B. technological innovation in the production of Economania goods. C. high unemployment in Economania the previous time period. D. Economania producing all consumer goods in the previous period.