A reduction in the level of unemployment would have which effect with respect to the nation's production possibilities curve?
A. It would shift the curve to the left.
B. It would shift the curve to the right.
C. It would not shift the curve; it would be represented by moving from a point inside the curve toward the curve.
D. It would not shift the curve; it would be represented by moving from a point on the curve to a point outside the curve.
Answer: C
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The deadweight loss of a tariff
A) is a social loss because it promotes inefficient use of national resources. B) is a social loss because it reduces the revenue of the government. C) is not a social loss because it merely redistributes revenue from one sector to another. D) is not a social loss because it is paid for by rich corporations. E) is not a social loss because it aids domestic consumers.
A firm has $200 million in total revenue and explicit costs of $190 million. If its owners have invested $100 million in the company at an opportunity cost of 10 percent interest per year, the firm's accounting profit is:
a. $400 million. b. $100 million. c. $80 million. d. $10 million. e. zero.
Whenever there is a surplus in the current account, the capital account: a. will be negative
b. will be positive. c. will be zero. d. could be negative, positive, or zero.
Exhibit 1A-1 Straight line
As shown in Exhibit 1A-1, the slope of straight line AB:
A. decreases with increases in X. B. increases with increases in X. C. increases with decreases in X. D. remains constant with changes in X.