Refer to the graph below. All of the following development would allow a movement from point C to a point outside the production possibilities curve, except:





A. An increase in the supply of resource

B. An improvement in the quality of resources

C. A reduction in unemployment of resources

D. A technological advance

Answer: C

Economics

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In the short run, when the Fed decreases the quantity of money

A) bond prices fall and the interest rate rises. B) bond prices rise and the interest rate falls. C) the demand for money increases. D) the supply of money curve shifts rightward.

Economics

The figure above shows a typical perfectly competitive corn farm, whose marginal cost curve is MC and average total cost curve is ATC. The market is initially in a long-run equilibrium, where the price is $3.00 per bushel

Then, the market demand for corn decreases and, in the short run, the price falls to $2.50 per bushel. In the new short-run equilibrium, the farm produces ________ bushels of corn and sells corn at ________ per bushel. A) 250,000; $3.00 B) 250,000; $2.50 C) 300,000; $2.50 D) 200,000; $2.50

Economics