An increase in the unemployment rate may be represented as a movement from a point on the production possibilities frontier to a different point on the frontier
Indicate whether the statement is true or false
FALSE
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The argument that import restrictions save jobs and promote prosperity fails to recognize that
A) import restrictions cannot create jobs in any industry. B) import restrictions cannot create jobs in any industry. C) there are no secondary effects of import restrictions. D) import restrictions will lower prices in the protected industries.
A perfectly elastic demand function
A. is characteristic of an individual firm operating in a perfectly competitive market. B. shows that the individual firm can increase sales by lowering the price of output. C. has a marginal revenue that is always decreasing. D. shows that a consumer is willing to pay any amount for the product.
Specializing in the production of a good or service in which one has a comparative advantage enables a country to do all of the following except
A) engage in mutually beneficial trade with other nations. B) increase the variety of products that it can consume with no increase in resources. C) consume a combination of goods that lies outside its own production possibilities frontier. D) produce a combination of goods that lies outside its own production possibilities frontier.
Production inefficiency occurs
A. only when an economy produces underneath its production possibility frontier. B. either when an economy produces underneath the production possibility frontier or when the economy is producing the wrong combination of goods on the production possibility frontier. C. only when an economy produces at the wrong point on the production possibility frontier. D. only when the economy produces outside the production possibility frontier.