A production point that lies outside the Production Possibilities Curve (PPC)
A) denotes inefficiency.
B) indicates unemployment.
C) is currently not attainable.
D) can never be reached, even in future periods.
C
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An increase in the minimum wage to $6 would cause ____ million people to lose their jobs.
New classical economists differ from traditional classical economists because new classical economists
A. Believe people's rational expectations will lead them to offset government policy. B. Focus on budget restraint and the use of monetary policy when the economy overheats. C. Believe that economic failures are inherent in a capitalist economy. D. Believe tax cuts and government spending should be used to increase demand and output.
Suppose that the income elasticity of demand for new clothes is positive. Other things being equal, which of the following statements is correct?
A. New clothes are a normal good. B. The quantity demanded of new clothes decreases as a consumer's income declines. C. There exists a positive relationship between income and the demand for new clothes. D. All of these
What can be expected to happen in a country that enacts trade barriers?
A) The rate of population growth will decrease. B) The rate of economic growth will decrease. C) The rate of immigration will increase. D) The rate of technological innovation will increase.