Answer the following questions true (T) or false (F)
1. Consider a country that produces only two goods: parrots and iguanas. Suppose it is impossible for this country to increase its production of parrots without producing fewer iguanas. In this case, its current output combination is efficient.
2. Any output combination along a production possibilities frontier is associated with fully utilized resources.
3. A decrease in population shifts the production possibilities frontier outwards over time.
1. TRUE
2. TRUE
3. FALSE
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The final consumer demand for beef in America will shift to the right if
A. the price of cattle decreases. B. the price of chicken increases. C. the price of pork decreases. D. the price of beef decreases.
Monetarists believe that:
a. velocity is constant. b. velocity is highly predictable. c. there are three motives for demanding money. d. changes in the money supply cause changes in velocity. e. a change in the money supply can affect real GDP.