Which of the following conditions is true for a nation operating at a point lying inside its production possibilities curve?
a. The nation is experiencing a technological breakthrough in one of its key industries.
b. The nation is clearly utilizing its resources efficiently.
c. The nation is producing the maximum output that can be produced with a limited quantity of resources.
d. The nation is not utilizing its resources efficiently.
e. The nation is producing the maximum output that can be produced with its unlimited quantity of resources.
d
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Evidence from business cycle fluctuations in the United States indicates that
A) a negative relationship between money growth and general economic activity exists. B) recessions are usually preceded by declines in bond prices. C) recessions are usually preceded by dollar depreciation. D) recessions are usually preceded by a decline in the growth rate of money.
In an economy with no taxes, an income level of $400 billion, consumption of $300 billion, and government spending of $25 billion, saving is equal to
A) $25 billion. B) $100 billion. C) $275 billion. D) $375 billion.
You are the newly appointed sales manager of the Rock Record Company and have been charged with the task of increasing revenues. Your economics consultants tell you that at present price and output levels, price elasticity of demand for your product is less than one. You should:
A. increase prices. B. cut advertising expenditures to decrease the demand for these records. C. hold prices constant and increase supply. D. decrease prices.
Governments may intervene in private markets through
A) rationing by political power. B) price floors. C) price ceilings. D) all of the above.