The production possibilities frontier model assumes which of the following?
A) Production of any level of the two products that the economy produces is currently possible.
B) Labor, capital, land, and natural resources are unlimited in quantity.
C) The economy produces only two products.
D) The level of technology is variable.
C
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At the current point of production on a nation's production possibilities frontier, the marginal benefit of a slice of pizza is 500 tacos per slice of pizza while the marginal cost of producing a slice of pizza is 750 tacos per slice of pizza
To be allocatively efficient, what should be done?
Answer the following statements true (T) or false (F)
1) In the Great Recession of 2007-2009, consumption C and investment I g fell while government G expanded. 2) In the Great Recession of 2007-2009, the Federal government enacted a "stimulus package" that was intended to bring inflation down. 3) When the Federal government provides tax rebate checks to taxpayers, as it did in 2008, the intent is to push the aggregate expenditures schedule in the economy upwards. 4) In the Great Recession of 2007-2009, the sector of the economy that decreased the most was G.