Use the following diagram to answer the next question.
The most likely cause for a shift in the production possibilities frontier from AB to CD is
A. the use of the economy's resources in a less efficient way.
B. an increase in government purchase of the economy's output.
C. an increase in the quantity and quality of labor resources.
D. an increase in the spending of business and consumers.
Answer: C
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In a competitive industry some firms earn positive economic profits while some earn zero economic profit in the long run because:
A) there exists free entry and exit of firms. B) the firms have different cost structures. C) the firms sell their output at different prices. D) the industry supply curve is perfectly elastic.
A net borrower country must also be a debtor nation
Indicate whether the statement is true or false
The goal of the Head Start program is to
a. offer comprehensive job training and skills enhancement programs for displaced workers b. give hungry families a chance to receive free government surplus foods c. enable farmers who are just starting a business the opportunity for low-interest loans to purchase equipment d. provide educational and social services to households with preschool children e. improve technological development so that U.S. companies can better compete internationally and hire more U.S. workers
The longer you hold stocks in the stock market, the more likely you will earn a positive return, ceteris paribus
Indicate whether the statement is true or false