A production possibility frontier illustrates what ideas about economic scarcity?
A) that limits to production and consumption exist
B) that tradeoffs are inevitable
C) that resources must be used for production and consumption to take place
D) all of the above
Answer: D) all of the above
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A firm's fundamental goal is
A) different for each firm. B) to make a quality product. C) to maximize profit. D) to gain market share. E) to decrease its employment of workers in order to cut its costs.
The Fisher equation states that the
A) expected real interest rate minus the expected inflation rate equals the nominal interest rate. B) expected inflation rate plus the nominal interest rate equals the expected real interest rate. C) nominal interest rate equals the expected real interest rate plus the expected inflation rate. D) expected real interest rate equals the expected inflation rate minus the nominal interest rate.