Expanding the production possibilities frontier occurs as a result of
A. a changing allocation of existing resources.
B. increased demand.
C. higher wages.
D. output growth.
Answer: D
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Along a given ________ Phillips curve, a lower unemployment rate can be achieved only by paying the cost of a ________ inflation rate, and a lower inflation rate can be achieved only by paying the cost of a ________ unemployment rate
A) long-run; higher; lower B) short-run; higher; lower C) long-run; higher; higher D) short-run; lower; higher E) short-run; higher; higher
If a public good is financed through Lindahl prices, those whose total willingness to pay for the public good is high will end up paying a higher Lindahl price than those whose total willingness to pay for the public good is low.
Answer the following statement true (T) or false (F)
The vertical distance between the average variable cost curve and the average total cost curve equals average fixed cost
Indicate whether the statement is true or false
Suppose a tax on buyers has been imposed in the graph shown. Once the tax is in place, the buyers purchase ____ units and pay ____ for each one.
A. 6; $22
B. 6; $34
C. 9; $18
D. 9; $30