When total surplus is maximized, then this implies that the output level will be produced where MC = MU.

A situation in which some resources are NOT fully utilized is represented in a production possibilities frontier diagram by

A) any point on either the horizontal or the vertical axis. B) the midpoint of the production possibilities frontier. C) a point outside the production possibilities frontier. D) a point inside the production possibilities frontier.

All else being equal, if the rate of growth in productivity in Spain is greater than the rate of growth in productivity in the United States, the euro

A) will decrease in value relative the U.S. dollar. B) will nominally depreciate against the dollar, but its real value relative to the dollar will remain unchanged. C) will increase in value relative to the U.S. dollar. D) will nominally appreciate against the dollar, but its real value relative to the dollar will remain unchanged.