Suppose a society begins by producing 3 units of X and 4 units of Y and then alters production to 4 units of X and 4 units of Y. If the quantity and quality of resources and the technology being used remain unchanged, then:
a. 3 units of X and 4 units of Y are a combination best represented by a point inside the production possibilities curve [PPC].
b. we can conclude that the society has moved along the PPC.
c. we can conclude that resources were being fully utilized at 3 units of X and 4 units of Y.
d. we can conclude that resources were being efficiently utilized at 3 units of X and 4 units of Y.
e. 3 units of X and 4 units of Y are a combination best represented by a point outside the PPC.
a
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Refer to Scenario 8.2. The more elastic is demand for yachts,
A) the more Q will fall and the more P will rise. B) the less Q will fall and the more P will rise. C) the more Q will fall and the less P will rise. D) the less Q will fall and the less P will rise. E) the closer is the new equilibrium point to the old.
If US consumers want to buy Chinese goods, they will
a. buy Yuans to sell US Dollars b. Sell Yuans to buy US Dollars c. Demand Yuan d. Both a and c