A point outside the production possibilities frontier _____
a. represents unemployment of resources.
b. represents full employment of resources.
c. would not represent an efficient combination of goods. d. cannot be reached using available technology.
e. is less desirable than a point inside the frontier.
d. cannot be reached using available technology.
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Refer to Scenario 17.4. If there is no flood insurance and no flood control system is in place, the expected loss from a flood is
A) $5,000. B) $10,000. C) $100,000. D) $200,000. E) $1,000,000.
Per capita GDP in the U.S. during the 20th century _____
a. has remained about the same b. increased until about 1970 and decreased since then c. was cyclical, but generally trending upward throughout the century d. was cyclical, but generally trending downward throughout the century
The real balance effect is one of the
A) reasons why an AD curve is downward-sloping. B) shifters of an AD curve. C) reasons why a short-run aggregate supply curve can be derived. D) shifters of a short-run aggregate supply curve.
Exhibit 5-8 GDP data (billions of dollars) Personal consumption expenditures$850 Interest90 Corporate profits150 Government spending400 Depreciation100 Rental income70 Gross private domestic investment120 Compensation of employees830 Exports120 Imports70 Indirect business taxes80 Proprietors' income120 Personal income taxes110 Social Security taxes50 Transfer payments160 In Exhibit 5-8, national income (NI) equals:
A. $2,330 billion. B. $1,350 billion. C. $1,320 billion. D. $2,360 billion.