Points C, D, E, and H on the above graph show:
A. a constant trade-off between food and clothing.
B. possible combinations of food and clothing.
C. unattainable combinations of food and clothing.
D. an inefficient allocation of society's scarce resources.
Answer: B
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When an economy is at full employment, the unemployment rate is zero percent
Indicate whether the statement is true or false
Which of the following would most likely reduce the birthrate?
(a) public health improvements (b) an increase in child mortality (c) a decline in the availability of secondary education (d) a reduction in the opportunity cost of a woman's time (e) all of the above.
If the rate of interest increases, firms will most likely respond by: a. increasing investment
b. decreasing investment. c. not changing investment. d. increasing their capital stock.
Economic rent is the difference between _____________ and ________________.
Fill in the blank(s) with the appropriate word(s).