Which of the following would cause an economy to produce at a point inside its production possibilities curve?
A. the efficient allocation of all factors of production
B. capital accumulation
C. unemployment and an inefficient use of available resources
D. population growth
Answer: C
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Refer to Table 23-11. Using the table above, calculate the unplanned change in inventories for each level of GDP, and explain what will happen to GDP
What will be an ideal response?
In the 1980s, U.S. economists acknowledged that it was not possible to exploit the trade-off suggested by the Philips curve of the 1960s. This realization led to more stable macroeconomic policy, which in turn contributed to:
a. more volatility in real output. b. less volatility in real output. c. complete removal of unemployment. d. more volatility in the price level. e. short business cycles.
The GDP deflator is designed to
What will be an ideal response?
A_________________is a situation where suppliers offer different amounts of products for sale at all possible prices in a market.
Fill in the blank(s) with the appropriate word(s).