When an economy's resources are not fully employed, then it must be true that the:
A. production point is located outside and to the right of the production possibilities curve.
B. production point is located along the production possibilities curve.
C. production point is located inside and to the left of the production possibilities curve.
D. production possibilities curve shifts to the left.
Answer: C
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The selection of particular products’ production processes
A. determines the output of other products made with those inputs at the same time. B. is part of the distribution problem in an economy. C. is accomplished without regard to profit in a laissez-faire economy. D. depends upon plans for distribution of the products.
The aggregate supply curve is a fixed point representing potential GDP
a. True b. False Indicate whether the statement is true or false
A mandatory seatbelt law ends up raising the number of traffic fatalities if it lowers fatalities per accident from 0.12 to 0.08 while raising the number of accidents per period from 400,000 to any more than
A) 480,000. B) 600,000. C) 660,000. D) 770,000.
When spending by the federal government exceeds net taxes, _____
a. the price level tends to fall b. the money supply must fall c. the aggregate demand curve shifts rightward d. aggregate supply moves rightward e. there is a federal budget surplus