If an economy is operating inefficiently, then
a. the economy can increase production of consumption goods without reducing capital goods.
b. there is always a positive opportunity cost to increasing output.
c. output can only be increased through capital investment.
d. output cannot be increased.
a
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Your local grocery store reduces transaction costs to the consumer
A) by reducing the consumer's need to travel from food producer to food producer (or manufacturer to manufacturer) to purchase the food staples that the consumer desires. B) by providing a system that directs funds from lenders to borrowers. C) by providing a system of justice to enforce contracts. D) All of the above are correct.
In the above figure, the opportunity cost of moving from producing 75 guitars and 25 ukuleles to producing 50 guitars and 50 ukuleles is
A) 25 ukuleles. B) 50 guitars. C) 100 guitars. D) 25 guitars.