Answer the following statements true (T) or false (F)
1. If a nation is producing a combination of goods inside its production possibilities curve, it is underutilizing its resources.
2. A nation’s production possibilities curve can be shifted outward by technological development.
3. A production possibilities curve will shift outward when additional resources are found.
4. Because of the high level of output in the United States, there is little need for choosing among alternative output combinations.
1. TRUE
2. TRUE
3. TRUE
4. FALSE
You might also like to view...
If Florida issues an alligator hunting permit to Jackson, who values an alligator hunt at $2,500, instead of Oliver, who values an alligator hunt at $4,000, the $1,500 difference in values is
A) a deadweight loss. B) a negative externality. C) a transactions cost. D) the social cost of the alligator hunt.
When there is a shortage of parking spaces at your college, the
A) demand for parking spaces is greater than the supply. B) supply of parking spaces is greater than the demand. C) quantity of parking spaces supplied is greater than the quantity of parking spaces demanded. D) quantity of parking spaces demanded is greater than the quantity of parking spaces supplied. E) Both answers A and D are correct.
One way to make consumers take a negative externality into account in their demand decision is to:
A. give suppliers a production credit. B. subsidize the purchase of the item. C. place a tax on the item. D. None of these statements is true.
What is the monthly interest rate if you are asked to convert a 12 percent annual rate to a monthly rate (calculate to 4 decimal places)?
What will be an ideal response?