If the resources within a nation are not being fully or efficiently utilized, it means:
a. that the nation is operating at a point inside its production possibilities curve.
b. that the nation is operating at a point outside its production possibilities curve.
c. that the nation is operating at a point along its production possibilities curve.
d. that the nation is probably technologically advanced.
e. the government of that nation should seize ownership of the resources in order to attain the necessary efficiencies.
a
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Those who favor smaller government tend to do what in order to make it more difficult for politicians to increase government spending? List at least two methods
What will be an ideal response?
Suppose the economy is at the natural real GDP. Changing macroeconomic policy to lower the interest rate while not affecting output means shifting the IS curve to the ________ and the LM curve to the ________
A) right, right B) right, left C) left, right D) left, left
GDP includes
When the actual rate of unemployment is less than the natural rate of unemployment, the economy
a. operates at an output greater than its long-run potential. b. operates at its maximum sustainable output. c. must also be experiencing stable prices (zero inflation). d. operates at an output less than its long-run potential.