"If Mexico is currently operating at a point inside its production possibilities frontier, then there are unemployed resources in Mexico." Is this statement true or false? Briefly explain your answer
What will be an ideal response?
The statement is true. Points within the production possibilities frontier are attainable, so it is possible for Mexico to be producing at a point within its frontier. At points within the production possibilities frontier, there are unemployed resources.
You might also like to view...
If the law of diminishing returns applies to labor then
A) the marginal product of labor must eventually become negative. B) the average product of labor must eventually become negative. C) the marginal product of labor must rise and then fall as employment rises. D) the average product of labor must rise and then fall as employment increases. E) after some level of employment, the marginal product of labor must fall.
Which of the following resulted in the financial crisis in 2007-08?
a. Falling international reserves b. Short-term investments made by China in the US c. Lack of transparency d. Bad loans on U.S. mortgages e. Fixed rates of interest
Improvements in the level of technology will generally shift the production function downward
a. True b. False Indicate whether the statement is true or false
An indifference map shows
A. A set of budget constraints and one indifference curve. B. A set of indifference curves. C. One indifference curve. D. A set of indifference curves and a set of budget constraints.