Author Question: The greater the degree of specialization in the economy, the: a. easier it is to discover a double ... (Read 93 times)

CharlieWard · **on:** Jun 30, 2018

The greater the degree of specialization in the economy, the:
a. easier it is to discover a double coincidence of wants.
b. more feasible is a barter system.
c. less likely it is that monetary exchange will develop.
d. harder it is to negotiate an exchange rate between all pairs of goods.
e. more likely it is that individual consumers are self-sufficient.

Question 2

Suppose a production possibilities frontier (PPF) has been plotted on a graph. If the horizontal axis of the graph measures the output of capital goods and the vertical axis measures the output of consumer goods, then a point outside the PPF represents:
a. a smaller quantity of consumer goods than that represented by a point inside the PPF.
b. an inefficient output combination of the two goods in the economy.
c. an unattainable output combination of the two goods in the economy.
d. an output combination of more consumer goods than capital goods.
e. a smaller quantity of capital goods than that represented by a point inside the PPF.