Which of the following is true?
a. The production possibilities curve indicates that it will be impossible to expand total output with the passage of time.
b. As long as resources are scarce, output cannot be increased.
c. The size of the economic pie is fixed, and therefore, if one individual has more income, others must have less.
d. Over time, the output of goods and services can be increased through human ingenuity and discovery of better ways of doing things.
D
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Investment spending tends to be closely related to the current pace of economic growth
Indicate whether the statement is true or false
A firm will hire additional units of any input up to the point where
a. the marginal productivity of the input is maximized. b. the marginal cost of employing the input is minimized. c. the expense of employing the last unit is equal to the revenue brought in by the last unit. d. the revenue brought in by the input is maximized.
According to the graph shown, if this economy were to open to trade, domestic producers would:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. transfer surplus in area DE to consumers.
B. transfer surplus in area DE to foreign producers.
C. lose surplus in area FG to deadweight loss.
D. lose surplus in area FG to foreign producers.
Between 1960 and 1995, Social Security benefits:
A. increased, which increased the poverty rate among the elderly. B. decreased, helping reduce the poverty rate among the elderly. C. increased, helping reduce the poverty rate among the elderly. D. decreased, which increased the poverty rate among the elderly.