Unemployment would cause an economy to
a. produce inside its production possibilities frontier.
b. produce on its production possibilities frontier.
c. produce outside its production possibilities frontier.
d. experience an inward shift of its production possibilities frontier.
a
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Suppose that IS and LM intersect at full-employment output. A rightward shift of LM will be followed by a __________ price level that shifts LM to the __________ in a return to full employment
A) rising; right B) rising; left C) falling; right D) falling; left
Efficiency can correctly be defined as
A) producing outside the production possibilities boundary. B) minimizing opportunity cost. C) producing the maximum output with given technology and resources. D) providing for the immediate needs of the greatest proportion of the population.
If labor is fixed at 5 units, how much does the second unit of capital add to total output? 
Amount of total output produced from various combinations of labor and capital.
A. 490 B. 390 C. 100 D. 50 E. none of the above
A main trading partner with the U.S. is:
A. Saudi Arabia. B. South Africa. C. Russia. D. Mexico.