Assume for the United States that the opportunity cost of each airplane is 50 cars. Which of these pairs of points could be on the United States' production possibilities frontier?
a. (200 airplanes, 5,000 cars) and (150 airplanes, 4,000 cars)
b. (200 airplanes, 12,500 cars) and (150 airplanes, 15,000 cars)
c. (300 airplanes, 15,000 cars) and (200 airplanes, 25,000 cars)
d. (300 airplanes, 25,000 cars) and (200 airplanes, 40,000 cars)
b
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A bank's required reserves are calculated by multiplying ________
A) its deposits by the required reserve ratio B) the sum of its deposits and cash in its vault by the required reserve ratio C) cash in its vault by the required reserve ratio D) the gold in its vault by the required reserve ratio
In the Keynesian model, a $1 billion increase in autonomous consumption leads to ________ in equilibrium output.
A. no change B. a greater than $1 billion increase C. a $1 billion decrease D. a $1 billion increase