In the figure above, the point labeled C in the production possibilities frontier
A) is unattainable; it is beyond the productive capability of this country.
B) represents a highly desirable output level in the long run, because it conserves scarce resources.
C) represents either unemployed or inefficiently utilized resources.
D) represents the maximum sustainable output level for this nation in the long run.
C
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Perfect competition displays the market mechanism at its best in many respects, yet most markets in operation today are monopolistic or oligopolistic, composed of a few large firms. Should government regulation break up those large firms into several smaller firms to try to achieve perfect competition? Why or why not?
Which of the following would be most likely to enhance the growth rate of an economy?
a. imposition of a quota restricting the quantity of steel imports b. gradual elimination of all tariffs over the next 10 years c. legislation limiting the number of hours employees can work during a week to 32 d. legislation requiring employers to provide one year of severance pay to any employee who is dismissed from employment