Which of the following is false?
a. A production possibilities curve represents the potential total output combinations of any two goods for an economy.
b. On a production possibilities curve, we assume that the economy has a given quantity and quality of resources and technology available to use for production.
c. If an economy is operating inside its production possibilities curve, it is not at full capacity, and is operating inefficiently. Such an economy's actual output is less than potential output.
d. By putting unemployed resources to work or by putting already employed resources to better uses, we could shift out the production possibilities curve.
d
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The consumer's lifetime budget constraint states that
A) the present value of lifetime consumption must be equal to the present value of lifetime gross income. B) the present value of lifetime consumption must be equal to the present value of lifetime disposable income. C) the present value of lifetime consumption plus the present value of lifetime taxes to be paid must be equal to the present value of lifetime income. D) the present value of lifetime taxes to be paid by the consumer must be equal to the present value of government spending.
Under a laissez-faire system,
A. government coordinates with firms to determine output and prices for goods and services. B. input-output analysis is used by planning agencies to determine output levels. C. the demand and supply process determines output and prices of goods and services. D. firms coordinate with each other to determine output and price levels for goods and services.
Increasing economic growth may be beneficial because
a. mass poverty is a serious problem in the United States. b. most Americans do not have the basic goods and services necessary for a decent life. c. the price level falls only if the economy is growing. d. most of the world is still below the poverty level of income.
If the real GDP of a country is substantially lower than its nominal GDP, the country experiences low inflation and unemployment
a. True b. False Indicate whether the statement is true or false