Why is a point below the production possibilities curve less efficient than a point on that curve?
What will be an ideal response?
A point on the production possibilities curve is efficient because it means the economy is producing the maximum outputs of goods and services with given resources and technology. By contrast, a point below the production possibility curve means that the use of the given resources is not generating the maximum possible outputs of goods and services. Thus, this point represents an inefficient combination of outputs produced with available resources and technology.
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As a result of "money illusion," people:
A. tend to be more upset by a decrease in their real wage than by a decrease in their nominal wage. B. tend to be more upset by an increase in their nominal wage than by a decrease in their real wage. C. tend to be more upset by a decrease in their nominal wage than by a decrease in their real wage. D. tend to be more pleased with an increase in their real wage than by an incre
The United States appears at times to have a totally schizophrenic attitude toward protectionism
The United States was the country that proposed the establishment of the World Trade Organization as early as the late 1940s, and was also the only industrialized country that refused to ratify this at that time. The United States has consistently argued on the side of multinational free trade in GATT Rounds, and yet maintains many protectionist laws such as those which reserve oil shipments from Alaska to U.S. flag carriers. How can you explain this apparent lack of national consistency on this issue?