Suppose there is no unemployment in the economy and society decides that it wants more of one good. Which of the following statements is true?
A) It can only achieve this with an advance in technology.
B) It can increase output without giving up another good.
C) It can only achieve this with an increase in resource supplies.
D) It will have to give up production and consumption of some other good.
Answer: D
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Nonexcludability is a feature of
A) goods but not services. B) all nonrival goods. C) goods with an external cost. D) public goods.
The price system rations goods among consumers in such a way that
A. all are treated equally. B. all needs are satisfied. C. the rich are favored. D. important needs are satisfied first.
During inflationary periods
a. all prices rise at the rate of inflation. b. real wages must necessarily decline. c. some prices may fall. d. relative prices do not change.
The U.S. president who referred to inflation as "public enemy number one" was
a. Richard Nixon. b. Gerald Ford. c. Jimmy Carter. d. Ronald Reagan.