A competitive, profit-maximizing firm hires workers up to the point where the

If an economy is operating at a point inside the production possibilities frontier, then

A) society's resources are being inefficiently utilized. B) the PPF curve will shift inward. C) society's resources are being used to produce too many consumer goods. D) economic policy must retard further growth of the economy.

Which of the following would be classified as private investment spending?

a. A family's purchase of a new home b. An automobile producer's purchase of steel for use in building new cars c. A paper company's purchase of timber d. A household's purchase of AT&T stock e. The government's purchase of a new office building