If a country is producing at point where an increase in the production of one good requires a reduction in the production of another good, then it must be producing at an:
A. efficient point.
B. undesirable point.
C. unattainable point.
D. inefficient point.
Answer: A
You might also like to view...
________ analysis addresses the question of whether a policy should be used, while ________ analysis addresses the economic consequences of a particular policy.
A. Monetary; fiscal B. Fiscal; monetary C. Positive; normative D. Normative; positive
For barter exchange to take place,
a. there has to be a double coincidence of wants b. the goods must be divisible c. money must be assigned to each barter transaction to indicate the values exchanged d. no less than four parties (at least two sellers, two buyers) to the exchange are needed e. gold has to be one of the goods traded
In the financial crisis that started in 2006, a significant indicator of the U.S. economic decline was:
A. a significant drop in interest rates. B. a sharp increase in unregulated Ponzi-type security sales. C. rising defaults by subprime mortgage borrowers. D. a large increase in loan default due to unemployment.
If expected inflation is 12 percent and the publicly regulated electric utility company is legally limited to a 10 percent rate of return, then we should expect
A. increased investment by the utility. B. expansion of electric power generating capacity. C. future power shortages. D. excess investment by the electric utility.