Which of the following is assumed in constructing a typical production possibilities curve?
A. The economy is using its resources inefficiently.
B. Resources are perfectly shiftable among alternative uses.
C. Production technology is fixed.
D. The economy is engaging in international trade.
Answer: C
Economics
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The trade-offs facing consumers include:
A) how to allocate income across goods and serves. B) how to allocate income between consumption and savings. C) both A and B D) none of the above
Economics
Suppose you place your savings in a time deposit at the bank, and that bank lends some of those funds to a business that desires a loan. This is an example of
A) direct finance. B) indirect finance. C) asymmetric information. D) adverse selection.
Economics