Given a production possibilities curve for defense goods and non-defense goods, which of the following is not true?
a. A production point outside the curve may be attained if new resources are discovered.
b. A production point outside the curve may be attained by acquiring a new technology.
c. A production point outside the curve may be attained by shifting resources to defense goods.
d. A production point outside the curve may be attained by acquiring both a new technology and greater resources.
e. A production point outside the curve cannot be attained with the current level of resources and technology.
c
You might also like to view...
An example of a real flow in the circular flow diagram is
A) a household's supply of work effort at its new business. B) Nike's payment of wages to workers in China. C) your county's collection of property taxes. D) the government's payment of wages to a soldier. E) a teacher's salary at the local high school.
In the short run, a supply shock that shifts the short-run aggregate supply curve leftward raises the price level and decreases real GDP
Indicate whether the statement is true or false
If the consumer sentiment index turns down sharply over a period of several months, which of the following is most likely to occur in the near future?
a. an increase in aggregate demand and expansion in real output b. a reduction in aggregate demand and a contraction in real output c. a reduction in aggregate demand and expansion in real output d. an increase in aggregate demand and a contraction in real output
At tax rates higher than the tax rate that maximizes tax revenues along a Laffer curve
A. a reduction in tax rates increases tax revenues. B. a reduction in tax rates reduces tax revenues. C. an increase in tax rates increases tax revenues. D. any variation in tax rates has no effect on tax revenues.