If a nation is currently operating at a point inside its production possibilities curve, it
A. is fully employing all of its resources.
B. is operating beyond its possible capacity.
C. is utilizing its resources efficiently.
D. none of the choices are true.
D. none of the choices are true.
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The neoclassical theory of investment says both real interest rates and taxes are important determinants of investment
Indicate whether the statement is true or false
According to the assumptions of the quantity theory of money, if the money supply decreases by 7 percent, then
a. nominal and real GDP would fall by 7 percent. b. nominal GDP would fall by 7 percent; real GDP would be unchanged. c. nominal GDP would be unchanged; real GDP would fall by 7 percent. d. neither nominal GDP nor real GDP would change.
Which of the following will not shift the demand curve for natural gas?
A.) A change in consumer income. B.) A change in consumer expectations. C.) A change in the weather and heating requirements. D.) A change in the technology used to produce natural gas.
If markets are perfectly competitive and production of a good results in water pollution, the imposition of a tax on that good will:
A. reduce the price of that good and increase pollution. B. reduce both the price of that good and pollution. C. increase the price of that good and reduce pollution. D. increase both the price of that good and pollution.