Figure 2-7
Which of the following could explain the shift in the production possibilities frontier from AB to AC in ?
a.
a productive improvement in petroleum production that has no effect on clothing production
b.
a productive improvement in clothing production that has no effect on petroleum production
c.
an increase in the size of the labor force that can produce either petroleum products or clothing
d.
oil drilling in Alaska is ended in order to protect the environment
e.
major oil reserves are discovered off the coast of Africa
d
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Fiat money is generally issued by
A) brokerage firms. B) private banks. C) major multinational corporations. D) central banks.
At each point on the line of income equality, the percentage of total population and the percentage of total income are equal
a. True b. False Indicate whether the statement is true or false
When the government eliminated Regulation Q in the 1980s, allowing S&Ls to raise interest rates in order to keep their depositors from switching their deposits to competing investment houses, many S&Ls were doomed because
a. they were locked into fixed, long-term mortgage loans at rates often lower than what they paid depositors, forcing them into more risky but higher interest-yielding loanventures b. they refused to finance (loan) speculative land development projects at a time when land values were skyrocketing, losing the opportunity to recoup losses caused by theelimination of Regulation Q c. they ventured abroad, mainly to the Middle East, for prospective borrowers and fell victim to the political instability of those ventures d. the Federal Reserve also raised interest rates, causing a general slowdown in the economy, which eventually affected S&L profitability e. member savings and loans quit the FSLIC in protest of the new rules
Abstract terms like "cost of living" and "price level" are meaningless to ordinary individuals
a. True b. False Indicate whether the statement is true or false