If a society is on its production possibilities frontier, and decides to produce more health care,
a. the cost of producing an additional unit of health care will rise
b. it must employ some previously unemployed resources
c. its standard of living will rise
d. some kind of inefficiency will occur
e. the cost of producing an additional unit of some other good will rise
A
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When the price level rises, the quantity of real GDP supplied ________ because ________
A) increases; new businesses open B) increases; businesses fail and have to shut their doors C) decreases; businesses fail and have to shut their doors D) increases; AS curve shifts rightward E) decreases; new businesses open
A basic principle of economics is that a country's standard of living depends on its
a. quantity of physical capital. b. abundance of natural resources. c. ability to produce goods and services. d. ability to thrive economically without having to interact with other countries.