What would be the output combination for two products A and B on the production possibility frontier, if a country uses its entire resources for producing A?
A. A: maximum, B: zero
B. A: maximum, B: maximum
C. A: zero, B: maximum
D. A: zero, B: minimum
Answer: A
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a. True b. False Indicate whether the statement is true or false
A supply shock is an event that directly alters firms’ costs and prices, shifting the economy’s aggregate supply and thus the Phillips curve.
Answer the following statement true (T) or false (F)
When economists say that the demand for labor is a derived demand, they mean that it is:
A. dependent on government expenditures for public goods and services. B. related to the demand for the product or service labor is producing. C. based on the desire of businesses to exploit labor by paying below equilibrium wage rates. D. based on the assumption that workers are trying to maximize their money incomes.
Capital goods
A. are consumed because they enhance the enjoyment consumers obtain from other goods and services. B. are a special type of consumption goods. C. are goods used to make consumer goods and services. D. refer to the expenses that a company incur for producing other types of goods.