In order for an economy to shift its production possibilities curve rightward, it must:
a. suffer resource unemployment.
b. experience an increase in its resources and/or an improvement in its technology.
c. use its resources more efficiently than at points along the curve.
d. all of these.
b
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Refer to Scenario 12.1. What is the probability of both Simon and Paula trying to rescue the man?
A) 9% B) 21% C) 49% D) 70%
The largest component of GDP in the US is typically:
a. government purchases. b. social securtity. c. consumption. d. investment. e. net exports.
The maximum price that a consumer is willing to pay for each unit bought is the ________ price
A) market B) reservation C) consumer surplus D) auction E) choke
Suppose the new doctor you found in the yellow pages turns out to be a charlatan. This is an example of
a. natural selection b. moral hazard c. hidden actions d. external costs e. hidden characteristics