The production possibilities curve shows:
A. the maximum amount of one good that can be produced for every possible production level of the other good.
B. how increasing the resources used to produce one good increases the production of the other good.
C. how increasing the production of one good allows production of the other good to also rise.
D. the minimum amount of one good that can be produced for every possible production level of the other good.
Answer: A
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When quantity supplied equals quantity demanded:
A. equilibrium is reached. B. the market forces push the economy to produce more. C. the market forces push the economy to produce less. D. the market forces cease to function.
Business cycles vary greatly in duration and intensity
a. True b. False Indicate whether the statement is true or false
Constant returns to scale are illustrated by
A. a downward sloping long-run average cost curve. B. a horizontal long-run average cost curve. C. an upward sloping long-run average cost curve. D. a long-run average cost curve that is shaped like an upside down U.
The sources of economic growth, as measured by increases in real GDP per-capita, include
A. an increase in the number of workers. B. an increase in economic freedom. C. an increase in the productivity of workers. D. all of these are sources of growth.