Use the following production possibilities frontiers to answer the next question.
Curve (a) is the initial frontier for the economy. If the economy's production possibilities then shift to curve (b), then point
A. N would still indicate a case of full production and full employment of resources.
B. L would indicate some unemployment or underemployment of resources.
C. N would indicate some unemployment or underemployment of resources.
D. L would still indicate a case of full production and full employment of resources.
Answer: C
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Refer to Table 5.1. Andrea has a comparative advantage in the production of
A) bracelets. B) tiaras. C) both products. D) neither product.
An externality is a cost or a benefit that falls on a third party and is ignored by buyers and sellers involved in the market transaction
Indicate whether the statement is true or false
The Standard Oil trust
A. was broken up in 1946. B. was controlled by several foreign nations. C. forced its rivals out of business. D. was put together by the U.S. government.
When the price of a good falls, marginal utility per dollar spent on that good ________, prompting consumers to purchase ________ of that good.
A. rises; less B. rises; more C. falls; less D. falls; more