BAE, a British defense company, has the contract to produce Tornado aircraft for the Royal Air Force. The BBC produces high-quality mystery shows for the British government. Both produce at the lowest possible cost
On a PPF with aircraft and mystery shows on the axes A) BAE and the BBC do not face increasing opportunity costs.
B) BAE and the BBC are achieving production efficiency.
C) BAE and the BBC are producing at a point outside the PPF.
D) the British government is operating outside its PPF.
B
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The United States has ________ social insurance programs, and generally has a ________ unemployment rate, as compared to Canada and Western Europe
A) less generous; lower B) more generous; greater C) less generous; greater D) more generous; lower
An exchange-rate system in which the nominal exchange rate is set by the government is known as
A) a flexible exchange-rate system. B) a floating exchange-rate system. C) a fixed exchange-rate system. D) an exchange-rate union.