An economy’s production possibilities curve could shift outward as a result of a(n)
a. increased level of technology.
b. reduction in the quantity of capital goods.
c. decrease in the production of goods.
d. decrease in the amount of available resources.
a. increased level of technology.
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A perfectly competitive firm earns a profit when price is
A) equal to minimum average variable cost. B) above minimum average total cost. C) equal to minimum average total cost. D) equal to minimum average fixed cost.
On a production possibilities frontier showing possible output levels of good A and good B, the opportunity cost of producing the first 10 units of A will usually be
a. the same as the opportunity cost of producing the second 10 units of A b. less than the opportunity cost of producing the second 10 units of A c. greater than the opportunity cost of making the second 10 units of A d. 10 units of A e. 10 units of B
A period in which the price level is rising is experiencing
a. inflation. b. reflation. c. deflation. d. deconstruction.
According to Keynes, a pessimistic outlook causes consumers and businesspersons to ____, and a recession could occur
a. increase planned investment b. decrease planned spending c. increase exports d. decrease imports e. decrease saving