Midterm: Random Practice Flashcards
1
Q
If it were possible to increase the output of both military and consumption goods, which of the following would be true?
A
The economy is inefficient and inside the production possibilities curve
2
Q
Problems faced by all economic systems include:
A
- how to allocate finite resources among infinite demands
- what to produce, how to produce, and who to produce it for
3
Q
A PPF shows
A
Limits on production due to scarcity of resources
