Which of the following correctly describes the relationship between productivity growth, unemployment, and the economy's production possibilities frontier?
A) An increase in productivity moves the economy from inside the production possibilities set to its frontier.
B) An increase in productivity shifts the economy from the production possibilities frontier to a point outside the production possibilities set.
C) An increase in unemployment shifts the economy further inside its production possibilities set.
D) An increase in unemployment shifts the economy from a point outside the production set back to the production possibilities frontier.
E) A reduction in unemployment shifts the entire production possibilities frontier outward.
C
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In the above figure, if a subsidy is granted that generates an efficient allocation of resources, then the output level will be
A) zero. B) 50 units per week. C) 150 units per week. D) 250 units per week.
The recent trend internationally has been for the executive and legislative branches of elected governments to get more control over monetary policy, as has been the case in countries such as the United States
Indicate whether the statement is true or false