The optimal point on a production possibilities curve is achieved where:
A. the smallest physical amounts of inputs are used to produce each good.
B. each good is produced at a level where marginal benefits equal marginal costs.
C. large amounts of capital goods are produced relative to consumer goods.
D. large amounts of consumer goods are produced relative to capital goods.
Answer: B
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The overall trend in resource prices has been
a. upward. b. downward. c. constant. d. increasing exponentially.
The efficient markets hypothesis implies that
a. building a portfolio based on a published list of the "most respected" companies is likely to produce a better-than-average return. b. if a stock rose in price last year, it is likely to rise in price this year. c. managed mutual funds should generally outperform indexed mutual funds. d. None of the above are correct.