A. It is not utilizing its resources fully
B. It is being productively efficient
C. It is a mixed economy
D. It is trading other economies
Related Mcqs:
- If a country has a bowed out (concave to the origin) production possibility frontier then production is said to be subject to ?
A. constant opportunity costs
B. decreasing opportunity costs
C. first increasing and then decreasing opportunity costs
D. increasing opportunity costs - An outward shift of the production possibility frontier may be caused by ?
A. An increase in demand
B. More government spending
C. Better training of employees
D. Productive inefficiency - Any combination of products inside the production possibility frontier is ?
A. Allocatively inefficient
B. X inefficient
C. Consumer inefficient
D. Productively inefficient - If a country has a liner (downward sloping) production possibilities frontier, then production is said to be subjected to ?
A. constant opportunity costs
B. decreasing opportunity costs
C. first increasing and then decreasing opportunity costs
D. increasing opportunity costs - Less demand in the economy may increase unemployment; this may lead to less spending which may reduce demand further. This is called ?
A. The upward accelerator
B. The downward multiplier
C. The upward PPF
D. The downward mpc - If the banks in an economy operate with a reserve ratio of 20 percent then the money multiplier is ?
A. 4
B. 20
C. 25
D. 5 - Points on the production possibilities frontier are ?
A. inefficient
B. normative
C. unattainable
D. efficient - Which of the following will not shift a country’s production possibilities frontier outward ?
A. an advance in technology
B. an increase in the labor force
C. an increase in the capital stock
D. a reduction in unemployment - The production possibilities frontier refers to_______________?
A. the amount of each commodity that can be produced given available resources
B. unlimited production of one commodity
C. limitless output of commodities
D. none of the above - Refers to Exhibit 4. Suppose the economy is operating in a recession such as point B in Exhibit 4. If policy makers allow the economy to adjust to the long run natural rate on its own, ?
A. People will reduce their price expectations and the short run aggregate supply will shift right
B. People will raise their price expectations and aggregate demand will shift left
C. People will raise their price expectations and the short run aggregate supply will shift left
D. People will reduce their price expectations and aggregate demand will shift right
