The production possibilities curve shows:
A. the minimum amount of one good that can be produced for every possible production level of the other good.
B. the maximum amount of one good that can be produced for every possible production level of the other good.
C. how increasing the resources used to produce one good increases the production of the other good.
D. how increasing the production of one good allows production of the other good to also rise.
Answer: B
You might also like to view...
"Privatization of government owned industries is a more desirable way to operate an economy" is a ________ statement about ________ policy.
A. positive; structural B. normative; monetary C. normative; structural D. positive; fiscal
Which of the following is true when an economy is producing efficiently?
A. The economy is producing outside the production possibilities curve. B. Everyone in the economy is happy. C. The economy is producing on the production possibilities curve. D. The economy is getting the fewest goods and services from the available resources.
Refer to the information provided in Figure 3.16 below to answer the question(s) that follow.
Figure 3.16Refer to Figure 3.16. When the economy moves from Point A to Point B, there has been
A. an increase in quantity demanded and an increase in quantity supplied. B. an increase in quantity demanded and an increase in supply. C. an increase in demand and an increase in quantity supplied. D. an increase in demand and an increase in supply.
Which of the following increases inflation and reduces unemployment in the short run?
a. either an increase in government expenditures by itself or an increase in the money supply growth rate by itself b. an increase in government expenditures, but not an increase in the money supply growth rate c. an increase in the money supply growth rate, but not an increase in government expenditures d. neither an increase in government expenditures nor an increase in the money supply