When the production possibilities curve is bowed out, resources are...
What will be an ideal response?
not equally suited to the production of both goods
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The industries or sectors of the economy in which business cycle fluctuations tend to affect output most are
A. clothing and education. B. capital goods and durable consumer goods. C. military goods and capital goods. D. services and nondurable consumer goods.
The problem of economic scarcity applies
A) only in developed countries, because resources are scarce in these nations. B) only in underdeveloped countries, because there are no productive resources in these nations. C) only to an economy with an insufficient supply of money. D) to the economies of all nations, regardless of their level of development.
According to the Classical growth model, population growth:
A. eventually reduces output. B. does not affect output per worker. C. eventually reduces output per worker. D. does not affect output.
An increase in the wage rate will change
A. the amount of labor employed, and it may also change the amount of other inputs employed. B. the price the firm charges for the product, but it will not affect the demand for any of the inputs. C. only the amount of labor hired. D. the firm?s profit-maximizing level output, but not its usage of inputs.