If society were to experience an increase in its available resources its production possibilities frontier would:
A. shift in.
B. not move.
C. become convex.
D. shift out.
Answer: D
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The combined efforts of the Fed and the Treasury in response to the financial crisis following the housing market crash caused:
A. aggregate supply to shift right to its pre-crisis level. B. aggregate supply to shift left, but still far below its pre-crisis level. C. aggregate demand to shift right to its pre-crisis level. D. the opposite reaction, and aggregate supply shifted farther to the left.
Points that lie below the production possibilities curve are inefficient because:
A. producing more of one good means producing less of the other. B. more of one good could be produced without producing less of the other. C. producers face scarcity. D. too many goods are being produced.
Suppose that the share of population employed in Country C is 50 percent, and that Countries C and D have the same real GDP per capita. Based on the information in the table, what share of Country D's population must be employed?CountryPopulation (millions)Average Labor Productivity ($)A1002,000B15010,000C7525,000D25050,000E9560,000
A. 100.0 percent B. 75.0 percent C. 12.5 percent D. 25.0 percent
To maximize profits, a perfectly competitive firm should produce until:
A. average total cost is minimized. B. marginal cost is equal to price. C. per unit profits are maximized. D. price is greater than average total cost.