If an economy is operating at a point inside the production possibilities curve, then
A) society's resources are being inefficiently utilized.
B) the curve will move to the left.
C) society's resources are being used to produce too many consumer goods.
D) economic policy must implemented to slow growth of the economy further.
Answer: A
You might also like to view...
Privatization is a process of
a. breaking up large government companies into small government companies b. selling government companies to private individuals c. consolidating small government companies into larger ones d. government buying private companies e. none of the above
A person's sensitivity to a price change for a good, such as breakfast cereal, depends on all of the following except the
a. price of the good b. cost of producing the good c. person's income d. availability and closeness of substitutes e. time the person has to adjust to the price change
If there is an unanticipated increase in aggregate demand, which of the following is most likely to occur?
a. a reduction in the price level b. an increase in the rate of unemployment c. an increase in employment d. an expansion in the federal budget deficit
The formula for the multiplier is
A. 1/(1 - MPC). B. 1 - MPS. C. 1 - MPC. D. 1/(1 - MPS).