Which of the following is NOT true of a nation's production-possibility curve?
A. Points outside the production-possibility curve are not feasible production points given the resources in the economy.
B. The negative slope of the production-possibility curve indicates declining productivity.
C. Points inside the production-possibility curve are feasible, but may represent unemployment of some of the economy's resources.
D. The production-possibility curve shows all combinations of amounts of different products that an economy can produce when its resources are fully employed.
Answer: B
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If an economist were to consult for a major Fortune 500 company, and he reached the conclusion the firm was making zero economic profit,
A) the firm's accounting profit would be greater than zero. B) the firm should go out of business immediately. C) the firm's accounting profits would be lower. D) the economist's numbers were probably wrong because economic profit can never be zero.
A college graduate in 1972 found a job paying $7,200. The CPI was 0.418 in 1972. A college graduate in 2016 found a job paying $35,000. The CPI was 2.40 in 2016. The 1972 graduate's job paid ________ in nominal terms and ________ in real terms than the 2016 graduate's job.
A. more; more B. less; more C. less; less D. more; less
Refer to the above figure. Line ACE is called
A. the savings function. B. the 45-degree line. C. the saving function. D. the consumption function.
All of the following are surplus items on the balance of payments accounts EXCEPT
A. U.S. residents purchases of gold from foreign residents. B. foreign tourists spending funds in the United States. C. sales of U.S. dollars to foreign residents. D. exports of merchandise.