If resources are better suited toward the production of one good than toward another good, then the PPF for those two goods is
What will be an ideal response?
bowed outward.
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If the marginal propensity to import is ________, then a $2 trillion increase in disposable income would increase import expenditure by $0.2 trillion
If the marginal propensity to import is ________, then a $2 trillion increase in disposable income would increase import expenditure by $0.6 trillion. A) 0.1; 0.3 B) 0.6; 2.0 C) 0.2; 0.6 D) 1.0; 3.0 E) 0.3; 0.1
A bond can be: a. partial ownership in a corporation
b. a debt obligation of a company. c. a debt obligation of a government or government agency. d. both B and C above
From 1973 to 1995, productivity of labor in the United States
A. declined because of reduced capital formation. B. declined because of slower technological improvement. C. increased because of expanded technological improvement. D. increased because of lower gasoline prices.
The cyclically-adjusted surplus as a percentage of GDP is 1 percent in Year 1. This surplus becomes a deficit of 2 percent of GDP in Year 2. It can be concluded from Year 1 to Year 2 that:
A. Fiscal policy turned more expansionary B. Fiscal policy turned more contractionary C. GDP increased D. GDP decreased