Which of the following would most likely cause a country's production possibilities set to shift outward at every point along the frontier?
A) a decrease in idle capital
B) a decrease in unemployment
C) a general technological advance that affects all sectors of the economy
D) a technological advance in only one sector of the economy
E) none of the above
C
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The difference between the economy's potential output and its actual output relative to its potential output at a point in time is called the:
A. output gap. B. trade deficit. C. budget deficit. D. full-employment rate.
See table below. Does production exhibit increasing costs? Which ring and machine combination will achieve the highest growth in the production of mood rings? Saturn Rings Machines 30 0 20 5 10 8 0 10
What will be an ideal response?
A firm's long-run average cost curve
A) shows the lowest attainable average total cost of producing any level of output when the plant and labor are fixed. B) is the sum of all of its short-run average cost curves. C) tells the firm which plant size to use and which quantity of labor to use to minimize the cost of producing any level of output. D) all of the above
Which of the following accurately indicates how the recent outbreaks of terrorism have influenced the GDP of western nations?
a. Additional expenditures on security designed to protect individuals from terrorist attacks are subtracted from GDP. b. Additional expenditures on security designed to protect individuals from terrorist attacks are added to GDP as part of output. c. Since expenditures on the prevention of terrorism do not contribute to the well-being of individuals, they exert no impact on GDP. d. Since terrorism is merely a redistribution of output, expenditures on the prevention of terrorism do not contribute to GDP.