If the economy is operating at a 7 percent unemployment rate we are operating
A. inside the production possibilities curve.
B. on the production possibilities curve.
C. outside the production possibilities curve
A. inside the production possibilities curve.
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An example of an underemployed resource is a(n)
a. farmer in Illinois who plants corn instead of wheat b. auto mechanic who is laid off from his job c. welfare recipient who doesn't work d. retired senior citizen who doesn't work e. person with a Ph.D. in chemistry who drives a taxi as a full-time job
The notion of opportunity cost can be represented graphically by the
a. area inside the production possibilities frontier. b. slope of the production possibilities frontier. c. vertical distance from the horizontal axis to the production possibilities frontier. d. horizontal distance from the vertical axis to the production possibilities frontier. e. sum of the horizontal and vertical distances to the production possibilities frontier.
What is the horizontal intercept of the budget line, given that M = $1,000, PX = $50, and PY = $40?
A. 20.0 B. 2000.0 C. 11.11 D. 25.0
An industry experiencing increasing returns to scale and fixed factor prices will have a long-run supply curve that is:
A. upward sloping. B. vertical. C. horizontal. D. downward sloping.