The figure above shows the production possibilities frontier for a country. In order for it to produce at point E, the
A) country would need to acquire more resources and/or more advanced technology.
B) production of compact cars would need to decrease.
C) production of SUVs would need to decrease.
D) country would need to use its resources more efficiently.
E) country would need to determine that compact cars and SUVs are equally important to it.
A
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Economies of scale and diseconomies of scale explain
A) cost behavior in the short run. B) profit maximization in the long run. C) the U-shape of the long-run average cost curve. D) the U-shape of the short-run average total cost curve. E) the U-shape of the marginal cost curves.
If foreign holdings of U.S. dollars increase, holding all else constant
A) the balance on the U.S. financial account will increase. B) the balance on the U.S. current account will increase. C) the U.S. balance of trade will increase. D) the balance on the U.S. capital account will increase.