If an economy is producing on its PPF, then it is definitely achieving
A) both production and allocative efficiency.
B) only production efficiency, but it definitely is not achieving allocative efficiency.
C) only allocative efficiency, but it is definitely not achieving production efficiency.
D) neither production nor allocative efficiency.
E) only production efficiency.
E
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Refer to Figure 26-10. In the figure above, suppose the economy is initially at point A. The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by the Federal Reserve?
A) an open market purchase of Treasury bills B) a decrease in the required reserve ratio C) an open market sale of Treasury bills D) an increase in income taxes
A nation's merchandise trade balance reflects
a. trade in tangible products b. value of exports c. value of imports d. the same information as its balance of payments e. trade in tangibles and intangibles