A production possibilities curve is drawn based on which of the following assumptions?
a. Resources are fixed and fully employed, and technology advances at the rate of growth of the economy overall.
b. Resources such as labor and capital will grow, are fully employed, and technology is unchanged.
c. None of the answers are correct.
d. Resources can vary, most resources experience times of unemployment, and technology advances, particularly during wartime.
e. Resources such as nonrenewable resources will decline, but labor remains fully employed, and technology is unchanged.
c
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The debate over how the government should respond to deep economic downturns may be easier to overcome if we focus on infrastructure spending because:
A. we have resolve the debate over infrastructure spending before we do anything else. B. there's broad agreement that the government should increase infrastructure spending. C. insufficient infrastructure spending is the root cause of most economic downturns. D. there's broad agreement that the government should decrease infrastructure spending.
Based on the data in the table above, the economy will be in short-run equilibrium at a price level of
A) 90. B) 110. C) 100. D) 120.
What are the outcomes of the following games, assuming the max-min criteria is used?
What will be an ideal response?
One way to view equilibrium in the simple Keynesian model without government spending and taxes is that:
A) saving equals planned investment. B) saving equals planned expenditures. C) saving equals planned autonomous spending. D) None of the above.