Refer to Figure 1.7. If this economy is currently producing at point F, then by employing more resources this economy
A. Can move to points D, G, or J.
B. Can move to point D, but not points G or J.
C. Can move to point G, but not points D or J.
D. Will remain at point F.
Answer: A
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Indicate whether the statement is true or false
In the view of the Classical economists, a increase in aggregate demand leads to
A) lower output levels. B) a higher price level. C) higher output levels. D) a lower price level.
When a monopolist's marginal cost of production is zero:
a. the deadweight loss is reduced. b. production is lower than if marginal cost were positive. c. the price charged is higher than if marginal cost were positive. d. maximizing profit is same as maximizing revenue.
The potential conflict of economic policy with political objectives can be used to explain
A. The ups and downs in overall business activity. B. The election of the Federal Reserve's Board of Governors. C. Illegal behavior on the part of politicians and economists. D. Why politicians stimulate the economy before an election and restrict it afterward.