After the terrorist attacks on September 11, 2001, the United States began devoting substantial resources toward the War on Terrorism, homeland security, and relief efforts. As long as our resources were being used efficiently, the production possibilities curve would suggest that:
a. we will have to give up the production of other goods that could have been produced with these resources.
b. we will be able to produce the same amount of other goods as before.
c. the military spending will result in an outward shift in the production possibilities curve but that the relief effort will result in an offsetting inward shift.
d. we will be unable to devote the resources necessary toward these efforts unless there is an improvement in technology.
a
You might also like to view...
Refer to Table 8-12. Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The base year used in calculating real GDP is
A) 2013. B) 2014. C) 2015. D) 2016.
Tariff revenue is an important source of operating revenue for many governments of high income countries
Indicate whether the statement is true or false
Which is better for making comparisons over time, nominal GDP or real GDP, and why?
What will be an ideal response?
Suppose that real GDP increases by 5% while the population of a country increases by 7%. Then:
A. Output per person necessarily increases B. Output per person necessarily decreases C. Output per person necessarily remains unchanged D. There is not enough information to determine what happens to output per person