When the production possibilities curve is bowed out, resources are:
a. equally well-suited to production of both goods.
b. not being used efficiently.
c. not equally suited to the production of both types of goods.
d. increasing as more of one good is produced.
e. of an inferior quality.
c
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Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
Refer to the above graph. What combination would most likely cause a shift from AD 1 to AD 3?
a. An increase in taxes and an increase in government spending b. A decrease in taxes and a decrease in government spending c. An increase in taxes and a decrease in government spending d. A decrease in taxes and an increase in government spending
Which of the following statements about markets is not true?
A. Markets have both a demand side and a supply side. B. Every market transaction involves an exchange of money for goods or resources or a direct exchange of goods or resources without money called barter. C. Markets necessarily have a physical location. D. The two types of markets include the factor and product markets.
If the relationship between the change in the inflation rate and the unemployment rate is depicted by the PP curve, then the value of the unemployment rate where the PP curve crosses zero is the nonaccelerating inflation rate of unemployment.
Answer the following statement true (T) or false (F)