Using the production possibilities frontier model, unemployment is described as producing at a point

A) on the exact middle of the PPF curve.
B) on either end of the PPF curve.
C) inside the PPF curve.
D) outside the PPF curve.


C

Economics

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When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.

A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline

Economics

Domestic producers require time to gain experience and lower their unit costs; this will allow these producers to compete successfully in international markets. This statement describes the ________ argument for protectionism

A) protecting national security B) diseconomies of scale C) infant industry D) anti-dumping

Economics

If children can be considered durable goods, then this would help explain

(a) high birth rates among farm families. (b) small family size among farm families. (c) lower birth rates in towns than in the countryside. (d) lower birth rates in the countryside than in towns.

Economics

Monopoly power in a market causes:

A. monopolists to earn economic profits of zero. B. consumers to gain. C. market surplus to be lost. D. producers to worry about competition.

Economics