Refer to the production possibilities curves below. Curve (a) is the initial curve for the economy. If the economy's production possibilities then shift to curve (b), then:
A. Point N would still indicate a case of full production and full employment of resources
B. Point P would still indicate a case of full production and full employment of resources
C. Point N would indicate some unemployment or underemployment of resources
D. Point L would indicate some unemployment or underemployment of resources
Answer: C
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Property owned by individuals is called:
A. Common property B. Shared property C. Public property D. Private property
Farmer Fanny sells her crops in a perfectly competitive market. If she produces 500 bushels for total revenue of $2,500 and if harvesting the 501st bushel would raise her total cost from $2,500 to $2,505, her
a. revenue will increase by $10 if she harvests the 501st bushel b. revenue will fall by $5 if she harvests the 501st bushel c. average fixed cost will rise if she harvests the 501st bushel d. profit will fall by $10 if she harvests the 501st bushel e. profit will remain unchanged if she harvests the 501st bushel
An increase in the price of a good will
a. increase supply. b. decrease supply. c. increase quantity supplied. d. decrease quantity supplied.
The business cycle is actually a continuous series of different __.
A. short-run macroeconomic equilibriums B. potential GDP values C. full-employment equilibriums D. nominal GPD vales