Which of the following would shift a nation's entire production possibilities curve outward?
a. moving from less than full employment to full employment.
b. developing a more efficient technology.
c. more efficiently allocating productive resources already available.
d. All of these.
Ans: b. developing a more efficient technology.
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Indicate whether the statement is true or false
Refer to the above figure. An unregulated natural monopolist would choose
A) output rate of Q1 and price P2. B) output rate Q1 and price P5. C) output rate Q3 and price P3. D) output rate Q4 and price P1.
Recall the Application about how society will cope with increased demands for entitlement programs to answer the following question(s). This Application addresses the impact of increasing life expectancy and aging populations on the costs of government entitlement programs such as Social Security, Medicare and Medicaid, and examines several possible solutions to the potential problem.According to this Application, how will an increase in government spending on entitlement programs affect the macroeconomy?
A. It will increase aggregate demand. B. It will decrease aggregate demand. C. It will increase aggregate supply. D. It will decrease aggregate supply.
Ray's company just announced that everyone will be getting their pay cut by 5% in order to avoid having to close down. Ray's demand for coffee, a normal good, will likely:
A. decrease, and his demand curve will shift to the left. B. increase, and his demand curve will shift to the right. C. increase, and his demand curve will shift to the left. D. decrease, and his demand curve will shift to the right.