The production possibilities curve tells us that if full employment exists and a nation wishes to permanently increase its production of military goods, it must
A. also increase its production of nonmilitary goods.
B. reduce its output of nonmilitary goods.
C. suffer inflation.
D. suffer unemployment.
B. reduce its output of nonmilitary goods.
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Aggregate income equals:
a. total profits. b. aggregate output. c. aggregate expenditure. d. b and c. e. all of the above.
When quantity demanded decreases at every possible price, the demand curve a. shifts to the left
b. shifts to the right. c. there is a movement along the given demand curve. d. none of the above.
When the supply of labor increases, according to the specificfactors model, which of the following is likely to happen in the sending country?
a. The number of workers employed will decrease. b. The wages for workers will rise. c. The marginal product of labor shifts to the right. d. All of these are likely to happen in the sending country.
As you move up the production possibility frontier, the absolute value of the marginal rate of transformation
A. initially decreases, then increases. B. increases. C. initially increases, then decreases. D. decreases.