In order for a production possibilities curve to shift to the right, which of the following must occur?
A) government involvement
B) increasing consumer wants
C) economic growth
D) reductions in the supply of resources
C
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For a number of years, General Motors used a pricing strategy designed to maintain at least 40 percent of the American car market. Does this strategy suggest that GM was maximizing profits or pursuing an alternative strategy?
What will be an ideal response?
Business taxes increase. What is the impact on aggregate expenditures and income?
A) Both increase. B) Both decrease. C) Aggregate expenditure increases and income decreases. D) Aggregate expenditure decreases and income increases.
If the price of a resource falls, other things constant,
a. demand for the product it produces will increase b. demand for a substitute product will increase c. demand for a substitute resource will fall d. supply of that resource will rise e. supply of a substitute resource will also rise
The perfect competition price system is the most efficient because it equates MC = P = MU
a. True b. False Indicate whether the statement is true or false