If an economy is represented by a point along its production possibilities curve:
A. it can produce more of one product even if it does not produce less of another product.
B. it can produce more of one product only if it produces less of another product.
C. it cannot produce more of one product unless it stops producing the other product entirely.
D. it cannot possibly produce more of one product, even if it produces less of another product.
Answer: B
You might also like to view...
Comment on the following statement: "The shape of the long-run average cost curve is determined by diminishing returns."
What will be an ideal response?
The evidence on mergers occurring within the hospital industry suggests that
A) efficiency gains that resulted have been passed on to customers through lower prices. B) the mergers have tended to not have any significant effect on hospital prices. C) prices have risen slightly as some efficiency gains are passed on to customers after mergers. D) prices have risen after mergers.
The opportunity costs of production in two countries engaged in trade
a. determine which country has an absolute advantage b. influence their domestic inflation rates c. lead to a higher level of economic efficiency d. create shifts of the production possibilities frontiers (PPF's) of both nations e. define the limits of the terms of trade
One of the reasons protectionists and government officials may favor using a quota instead of a tariff is
A. quotas create less market distortions than tariffs. B. quotas give less power to politicians than tariffs. C. quotas ensure that the quantities of imports are strictly limited. D. quotas generate more revenue for the government than tariffs.