The production possibilities curve shows that:
A. some of one good must be given up to get more of another good in an economy that is operating efficiently.
B. no output combination is impossible.
C. an economy that is operating efficiently can have more of one good without giving up some of another good.
D. scarcity can be eliminated.
Answer: A
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The Japanese economy has been consistently weak throughout the 1990s. This has caused a slight deflation, illustrating the
a. negligible cost of eliminating inflation. b. very slow operation of the economy's self-correcting mechanism. c. tendency of inflation to accelerate during recessions. d. rapidity with which inflation can be stopped.
Refer to the table shown.BotswanaZimbabweGoldNickelGoldNickel030009060200186012010036301800540Botswana's opportunity cost of producing nickel (in terms of gold) is:
A. 60. B. 3/5. C. 5/3. D. 100.