If an economy produces its most wanted goods but uses outdated production methods, it is:
A. achieving productive efficiency but not allocative efficiency.
B. not achieving productive efficiency.
C. achieving both productive and allocative efficiency.
D. engaged in roundabout production.
Answer: B
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Use the following graph for a market to answer the question below.
Which of the following could not explain the indicated increase in equilibrium price from P1 to P2?
A. an increase in production costs B. an increase in consumer incomes C. an increase in the price of a substitute product D. a decrease in the price of a complementary product
A decision to supply labor or not to supply it is also a decision to
a. earn the highest possible wage. b. demand or forgo a certain amount of leisure. c. be as productive as possible. d. join the union.
Transaction costs
What will be an ideal response?
Human capital includes investments in education and skills.
Answer the following statement true (T) or false (F)