Which of the following is true of a production possibilities curve?
a. It reveals the maximum amount of any two goods that can be produced from a fixed quantity of resources.
b. It reveals the ideal level of technology for a country.
c. It assumes that the prices of the two products are equal.
d. For a country that could produce many different goods, it shows which two goods are most important to produce.
A
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Consider the Taylor rule for the target of the federal funds rate
Suppose the equilibrium real federal funds rate is 2 percent, the target rate of inflation is 3 percent, the current inflation rate is 3 percent, real GDP equals potential real GDP, and the weights are 1/2 for the inflation gap and the output gap. Using the Taylor rule, what does the target for the federal funds rate equal? Next, if the Federal Reserve lowered the target for the inflation rate to 1 percent, how much would the target for the federal funds rate change?
An overall decline in communication and transportation costs have facilitated global interactions in the twentieth and the twenty first century
a. True b. False Indicate whether the statement is true or false