An outward shift of a nation's production possibilities frontier represents
A) economic growth.
B) rising prices of the two goods on the production possibilities frontier model.
C) an impossible situation.
D) a situation in which a country produces more of one good and less of another.
Answer: A
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Consider the following:
(i) Suppose the firm is in the short run, and consider the first stage of production. What happens to the average product of labor when the firm adds an additional worker? What causes this change in labor productivity? (ii) Repeat part i for the second stage of production.
If the economy is producing a level of output $45 billion above full-employment real GDP, the most viable option to shift the output to full-employment GDP would be a
A. tax cut of $45 billion. B. tax increase of some amount less than $45 billion. C. tax increase of some amount greater than $45 billion. D. tax increase of $45 billion.
Which is the most likely reason why more young people from low-income regions are more likely to join the military, compared to those in high income regions?
A) They are more easily pressured by recruitment officers. B) Their opportunity costs are relatively lower. C) They are more patriotic than their richer counterparts. D) They are, to put it bluntly, more foolish than their richer counterparts.
Price elasticity of demand refers to the ratio of the:
A. percentage change in price of a good in response to a percentage change in quantity demanded. B. percentage change in price of a good to a percentage increase in income. C. percentage change in the quantity demanded of a good to a percentage change in its price. D. percentage change in the quantity demanded of a good to a percentage change in income.