In order to shift the current production possibilities curve outward, an economy
A. Must use more of the existing resources.
B. Will never be able to produce a combination of goods and services outside the current production possibilities curve.
C. Can raise the prices of goods and services to encourage firms to produce more.
D. Must find additional resources or better technology.
Answer: D
You might also like to view...
When I buy an $12.00 movie ticket rather than two paperback books, the opportunity cost of going to the movie is the two paperback books I did not buy
Indicate whether the statement is true or false
Credit unions are federally insured through the
A) FDIC. B) FSLIC. C) NCUSIF. D) Comptroller of the Currency.
The purchasing power parity predicts that if US price level falls relative to the Mexico price level, then
a. Dollar value will rise relative to the peso b. Dollar value will fall relative to the peso c. There is no effect on either currency d. PPP predicts price level will normalize in the long-run
Which of the following is least likely to result in inflation?
a. A drought in California that causes farm production to fall. b. The government printing money to finance deficits. c. A reduction in consumer confidence. d. Rising instability in oil-producing nations.