Using a production possibilities curve, a technological advance that increases the amount of output for the same amount of inputs would be illustrated as a(n):
A. flattening of the curve.
B. movement from one point to another point along the curve.
C. outward shift of the curve.
D. movement from a point on the curve to a point inside the curve.
Answer: C
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Saving is disposable personal income spent on investment
a. True b. False Indicate whether the statement is true or false
Which of the following does purchasing-power parity imply?
a. The purchasing power of the dollar is the same in the U.S. as in foreign countries. b. The price of domestic goods relative to foreign goods cannot change. c. The nominal exchange rate is the ratio of U.S. prices to foreign prices. d. All of the above are correct.
Outsourcing is a source of increased U.S. output.
Answer the following statement true (T) or false (F)
Suppose there is a simultaneous fiscal expansion and monetary contraction. We know with certainty that
A) output will increase. B) output will decrease. C) the interest rate will increase. D) the interest rate will decrease. E) both output and the interest rate will increase.