A production possibilities curve will shift inward
A) when the unemployment rate increases.
B) when production is inefficient.
C) when resources are expanding.
D) when a war destroys the capital goods of a country.
Answer: D
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How can a buyer of car insurance help in reducing the effects of adverse selection?
What will be an ideal response?
The U.S. Postal Service engages in price discrimination.
Answer the following statement true (T) or false (F)
Adam Smith's notion of the invisible hand served as the foundation of
a. mercantilist thought. b. the philosophy of protectionism. c. the liberal economic thought of the nineteenth century d. the neo-Marxian tradition. e. none of the above.
A system in which depository institutions hold reserves that are less than the amount of total deposits is
A. sweep accounts. B. the Federal Reserve System. C. the federal funds market. D. fractional reserve banking.