An inward shift of the production possibilities curve
A. represents an economic decline.
B. means that the previous levels of production are now unobtainable except under unusual circumstances such as war.
C. means that the economy can produce more of both goods.
D. represents an economic decline AND means that the previous levels of production are now unobtainable except under unusual circumstances such as war.
D. represents an economic decline AND means that the previous levels of production are now unobtainable except under unusual circumstances such as war.
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An increase in investment spending would cause the FE line to
A) shift to the right. B) shift to the left. C) remain unchanged. D) remain unchanged if Ricardian equivalence holds; otherwise, shift to the right.
A Prisoners Dilemma illustrates the fact that
a. Rational choices can lead to inefficient outcomes b. Rational choices always leads to good outcomes c. Rational choices always lead to inefficient outcomes d. None of the above
A perfectly competitive firm faces a:
A. perfectly elastic demand function. B. demand function with unitary elasticity. C. perfectly inelastic demand function. D. None of the answers is correct.
Why would an economist argue that tuition is not the largest cost of attending a state university?
What will be an ideal response?