Although all points on the PPF are efficient, that alone does not tell us which point is "best" for the society

Which of the following is given in the video as an example of a negative real shock to the economy?

A. A technological advance that increases investment B. A rapid rise in the price of oil C. A decrease in consumer confidence D. A stretch of very bad weather

If a firm is producing an output level at which marginal revenue exceeds marginal cost, the firm will increase profits by reducing its output level

a. True b. False Indicate whether the statement is true or false