A production possibilities curve shows the various:
a. prices that can be charged for capital and consumption goods.
b. combinations of prices and outputs that can be produced.
c. combinations of goods the economy has the capacity to produce.
d. combinations of resources and prices that the economy can produce.
c
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Which one of the following would likely reduce the level of structural unemployment?
A) increasing the minimum wage to encourage more people to work B) limiting unemployment insurance benefits C) strengthening restrictions on who can be licensed to enter certain professions D) increasing the level of union bargaining power
A public good is
a. any good provided by government. b. a good that can be most cheaply provided by government, though it may in fact be provided by private enterprise. c. a good whose benefits cannot readily be restricted to a small group of people. d. a good whose benefits cannot be enjoyed by an individual alone.
If the fluctuations in the economy’s real growth rate from year to year are caused primarily by variations in the rate at which aggregate demand increases, then data would show the most rapid inflation occurs when
A. unemployment is the highest, and the lowest inflation occurs when unemployment is the lowest. B. AS grows most rapidly, and the lowest inflation occurs when AS grows most slowly. C. AD rises most slowly, and the lowest inflation occurs when AD rises most rapidly. D. output grows most rapidly and the lowest inflation when output grows most slowly.
The price of a new model of iPad tends to fall significantly a year after it is introduced. Suppose Jane bought an iPad as soon as it was introduced (a year ago) and paid a premium price for it. Now she wants to buy an iPad cover. Which of the following should she consider before buying the new accessory?
A. The price of replacing her iPad, the price of the iPad cover, and the benefit she'll receive from using the iPad cover B. The price of the iPad cover and the benefit she'll receive from using the iPad cover C. The price she paid for her iPad, the price of the iPad cover, and the benefit she'll receive from using the iPad cover D. The price of the iPad cover had she bought it with the iPad, the current price of the iPad cover, and the benefit she'll receive from using the iPad cover