The production possibilities frontier of an economy is based on the assumption that the:
a. amount of consumer goods produced in the economy is constant during a given year.
b. quality of labor available in the economy is variable during a given year
c. patent laws applicable in the economy are constant during a given year.
d. level of technology available in the economy is variable during a given year.
e. economy can either produce capital goods or consumer goods during a given year.
c
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When you make the decision to spend your time attending class, which economic question are you answering?
A) Why? B) What? C) How? D) Is this in the social interest? E) For whom?
Which of the following is TRUE?
A) Economic efficiency occurs if the maximum feasible amount of output is achieved from a given quantity of inputs. B) Economic efficiency depends only on what is feasible. C) If production is technologically efficient then it must be economically efficient. D) None of the above statements are correct.