An outward shift of the production possibilities curve represents
A. economic recession.
B. economic contraction.
C. economic growth.
D. economic inflation.
Answer: C
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Which of the following is likely to reduce the total efficiency units of labor in an economy?
A) A decrease in the price of capital B) A recession that lowers aggregate demand C) An increase in the price level D) An earthquake that kills several people
Keynesians view the economy as unstable as a result of the instability of aggregate demand. Which component of aggregate demand is primarily responsible?
a. Net export b. expectations c. Consumption d. Private investment e. both b and d.
The law of demand states that, other things equal, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quantity demanded rises
a. True b. False Indicate whether the statement is true or false
Use the following table for a certain product's market in Marketopia to answer the next question.Quantity Demanded DomesticallyPriceQuantity Supplied Domestically1,400$102,2001,60092,0001,80081,8002,00071,6002,20061,4002,40051,200If the world price for this product is $6, then domestic producers in Marketopia would lose revenue equal to
A. $6,000. B. $14,400. C. $8,400. D. $2.