If an economy is operating at a point inside the production possibilities curve,
a. its resources are not being used efficiently.
b. the curve will begin to shift inward.
c. the curve will begin to shift outward.
d. This is a trick question because an economy cannot produce at a point inside the curve.
A
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If the law of increasing opportunity cost holds, can the production possibility frontier be a straight line?
What will be an ideal response?
Figure 4-16
Assume that Figure 4-16 shows the supply of soda. An increase in the price of syrup used in the production of soda will shift supply from
a.
S1 to S2.
b.
S2 to S1.
c.
S2 to S3.
d.
S1 to S3.
The United States funds its unemployment compensation system by taxing
A. older, larger firms at a higher rate than younger, smaller firms. B. firms more when they have a history of causing more layoffs, up to a point. C. all firms at the same rate. D. firms more when they have greater profits so that they can afford the additional taxes. E. nonunion firms more than union firms because union firms pay higher wages on average.
Banks that receive their charters from the federal government are called
A. government banks. B. state banks. C. federal banks. D. national banks.