If an economy is represented by a point inside its production possibilities curve:
A. it can produce more of one product even if it does not produce less of another product.
B. it can produce more of one product only if it produces less of another product.
C. it cannot produce more of one product unless it stops producing the other product entirely.
D. it cannot possibly produce more of one product, even if it produces less of another product.
Answer: A
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If the reserve ratio is 0.3 and a deposit of $1,000 is made to the bank, the bank can lend out $700
Indicate whether the statement is true or false
Which of the following is true of the output level produced by a firm in long-run equilibrium in a monopolistically competitive industry?
A) It produces at minimum average cost. B) It does not produce at minimum average cost, and average cost is increasing. C) It does not produce at minimum average cost, and average cost is decreasing. D) Either B or C could be true.