If an economy is operating at a point inside the production possibilities curve,
a. its resources are not being used efficiently.
b. the curve will begin to shift inward.
c. the curve will begin to shift outward.
d. This is a trick question because an economy cannot produce at a point inside the curve.
a
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Approaches to establishing central bank credibility include
A) continued success at keeping inflation under control. B) central bank independence. C) appointment of a more conservative central banker. D) all of the above.
In a perfectly competitive market with 1,000 firms, each demanding 50 laborers at a wage rate of $5 per hour, the quantity demanded of labor by the industry producing for this market at this wage is
a. 25,000 workers b. 50,000 workers c. 250,000 workers d. 5,000 workers e. insufficient information to determine the quantity