Which of the following statements is true?
A) In a world of efficiently used scarce resources, more of one good necessarily means less of some other good.
B) The law of increasing opportunity costs assumes that all people have the same ability to produce goods.
C) Efficiency implies that it is impossible to get more of one good without getting less of another.
D) Even if a country has unemployed resources, it can still be operating on its production possibilities frontier (PPF).
E) a and c
E
You might also like to view...
For each of the following changes, explain what will happen to the expected marginal product of capital curve or the user cost of capital curve, and what will happen to the desired capital stock:
a. The real price of capital goods increases. b. The depreciation rate increases. c. The corporate income tax rate decreases. d. The real interest rate decreases. e. Expected future output decreases.
If Joe says that nothing comes close to a Pepsi, his demand for Pepsi is likely to be
a. relatively price elastic b. relatively income elastic c. relatively price inelastic d. unit elastic e. infinitely elastic