A point outside the production possibilities curve represents a combination of goods that is:
A. inefficient.
B. efficient.
C. unattainable.
D. attainable.
Answer: C
You might also like to view...
Assuming that the average duration of its assets is four years, while the average duration of its liabilities is three years, then a 5 percentage point increase in interest rates will cause the net worth of First National to ________ by ________ of
the total original asset value. A) decline; 5 percent B) decline; 10 percent C) decline; 15 percent D) increase; 20 percent
Which term measures production well and indicates when a country is materially better or worse off in terms of jobs and incomes?
a. GDP b. Standard of living c. GDP per capita d. Nominal GDP
In a closed economy, national savings is:
A. equal to national investment. B. the sum of the savings of individuals and corporations plus the savings of the government. C. the sum of public savings plus private savings. D. All of these are true.
According to the expectations hypothesis:
A. when short-term rates are expected to remain constant in the future, the long-term interest rates are higher than current short-term interest rates. B. expectations of future short-term rates equal estimates of current short-term rates. C. short-term bonds are perfect substitutes for long-term bonds. D. when short-term interest rates are expected to rise in the future, the long-term interest rates are equal to current short-term interest rates.