The production possibilities frontier model shows that
A) if all resources are fully and efficiently utilized, more of one good can be produced only by producing less of another good.
B) a market economy is more efficient in producing goods and services than is a centrally planned economy.
C) economic growth can only be achieved by free market economies.
D) if consumers decide to buy more of a product, its price will increase.
A
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Refer to the above figure. Which variable is autonomous with respect to real GDP?
A) real consumption spending B) the sum of real consumption and real saving C) real saving D) real investment spending
Bob is the only carpet installer in a small isolated town. The above figure shows the demand curves of two distinct groups of customers-residential and business. Bob is likely to price discriminate because
A) elasticities differ across markets. B) the installation of carpets cannot be resold. C) Bob can probably identify which consumers belong to which segment. D) All of the above.