Which of the following conditions is true for a nation operating at a point lying inside its production possibilities curve?
a. The nation is experiencing a technological breakthrough in one of its key industries.
b. The nation is clearly utilizing its resources efficiently.
c. The nation is producing the maximum output that can be produced with a limited quantity of resources.
d. The nation is not utilizing its resources efficiently.
e. The nation is producing the maximum output that can be produced with its unlimited quantity of resources.
d
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An economy that is producing inside its production possibilities frontier can be efficient.
Answer the following statement true (T) or false (F)
Which of the following would decrease the balance on the current account?
A) a decrease in imports B) a decrease in foreign direct investment C) a decrease in the amount of aid money the government sends abroad D) None of the above will decrease the balance on the current account.
Generally speaking, the inclusion of transportation costs in the total costs of production has the effect of causing the LRAC curve to:
A) shift down. B) flatten out. C) shift up. D) become steeper over the range on economies of scale.
If the monopoly's demand curve intersects the AVC curve at minimum AVC, the firm will shut down
Indicate whether the statement is true or false