Exhibit 17-1 Nation of Padia
Exhibit 17-1 shows the production possibilities curve of the nation of Padia, an LDC. With foreign investment, which of the following changes that was not previously possible would become possible?
A. a move from V to III
B. a move from IV to II
C. a move from III to a point beyond the production possibilities curve
D. a move from III to I
Answer: C
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The long-run aggregate supply curve is ________ because along it, as prices rise, the money wage rate ________
A) vertical; falls B) vertical; rises C) upward sloping; falls D) upward sloping; stays constant
____ completely deplete the most vital resources
a. We are not going to b. In the near future we will c. We are eventually going to d. We have already begun to
If the wage is kept above the equilibrium level for any reason, the result is unemployment
a. True b. False Indicate whether the statement is true or false
Refer to the above figures. Which panel(s) represent the effect of an increase in the price level?
A. Panel A only B. Panel D only C. Panels A and C only D. none of the panels