The production possibilities frontier can be used to show all of the following except one. Which is the exception?
a. scarcity
b. opportunity cost
c. the law of increasing opportunity cost
d. efficiency
e. the best combination of goods and services for an economy
E
You might also like to view...
Refer to Figure 17-4. Consider the shift in the short-run Phillips curves shown in the above graph. This shift may be explained by
A) an increase in the expected rate of inflation from 4.0 to 5.5 percent. B) an increase in the natural rate of unemployment from 5.0 to 6.2 percent. C) either an increase in the natural rate of unemployment from 5.0 to 6.2 percent or an increase in the expected rate of inflation from 4.0 to 5.5 percent. D) None of the above is correct.
One reason why the spending side of the budget is more susceptible to special interests than the tax side is because _____
a. spending can be allocated geographically, but taxation cannot b. tax programs are largely determined by the Internal Revenue Service, not Congress c. people do not care about taxation d. the administrative costs of spending programs are lower, making change cheaper