Which of the following reasons might explain why an economy would be operating inside its production possibilities curve (PPC)?
a. Because technological innovations have increased the productivity of labor and capital.
b. Because of unemployment or underemployment of labor, perhaps due to discrimination against employing workers of a certain race or gender.
c. Because damage to natural resources, such as might be caused by deforestation leading to erosion of topsoil, has shrunk the land resource.
d. Because shrinking population has reduced the number of productive workers in the economy.
b
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The interest rate the Fed charges for secondary credit is:
A. above the primary discount rate. B. equal to the primary discount rate. C. below the market federal funds rate. D. below the primary discount rate.
Characteristics of the Swiss health care system include:
a. a nationalized hospital system where most clinicians are government employees. b. long waiting lists for all elective surgeries. c. individual insurance policies with age-related premiums issued at birth. d. the ability to "opt out" of the government-run health insurance system and seek private coverage. e. government-run insurance coverage financed via payroll taxes.
GDP does not directly include:
a. the value of final goods and services produced, but not sold, during a period.
b. the value of services rendered during a period
c. the value of intermediate goods sold during a period.
d. any of the above.
In the past 50 years, the economy of the United States grew, causing
A. a lower standard of living after adjusting for inflation. B. a higher standard of living for most citizens. C. a stagnant standard of living after adjusting for inflation. D. a higher standard of living for the employed.