When more resources in an economy are devoted to the production of capital goods:
a. the production possibilities curve shifts inward
b. the production possibilities curve in the current period shifts inward, but shifts outward in the future.
c. the production possibilities curve shifts outward next in the future.
d. the production possibilities curve is unchanged from period to period.
c
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The figure shows the market for books before and after a sales tax is introduced. Each week, the tax creates a deadweight loss of ________, decreases consumer surplus by ________, and decreases producer surplus by ________
A) $15; $10; $5 B) $12; $8; $4 C) $3; $10; $5 D) $3; $2; $1
For the recessions in the United States since the 1950s,
A) unemployment falls on average by 2 percentage points during the 12 months after a recession begins. B) unemployment rises on average about 5 percentage points during the 12 months after a recession begins. C) cyclical unemployment has been non-existent. D) unemployment rises on average by about 1.2 percentage points during the 12 months after a recession begins.