The underlying reason production possibilities frontiers are likely to be bowed out (rather than linear) is
A. choices have consequences.
B. some resources and people can be better used producing one good rather than another.
C. there is always some level of unemployment.
D. there is always opportunity costs.
Answer: B
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The household survey asks adults about their employment status and is used to compile the monthly unemployment rate
Indicate whether the statement is true or false
According to the text, if individuals base their expectations on economic models, we say that their expectations are:
A. extrapolative. B. adaptive. C. historical. D. rational.
In terms of the production possibility frontier, ________ would best be shown by the production possibility frontier shifting outward.
A. a change in consumer tastes B. a decrease in the unemployment rate C. an increase in productivity attributable to an increase in the capital stock D. a shift in resources from capital goods to consumer goods
When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a shortage of labor
a. True b. False Indicate whether the statement is true or false