When a firm or economy is operating efficiently, it is operating
a. outside its production possibilities frontier.
b. inside its production possibilities frontier.
c. on its production possibilities frontier.
d. at the intersection of the production possibilities frontier and the vertical axis.
e. at the intersection of the production possibilities frontier and the horizontal axis.
c
You might also like to view...
An example of "investment" in computing real GDP using the expenditure approach is the purchase of
A) a new set of tools by an auto mechanic, for use in repairing cars. B) 100 shares of IBM stock. C) a 100 year old house by a married couple. D) computer chips by Dell to put in their personal computers.
In the Keynesian cross diagram, an increase in autonomous consumer expenditure causes the aggregate demand function to shift ________ and the equilibrium level of aggregate output to ________,
everything else held constant. A) up; rise B) up; fall C) down; rise D) down; fall