On a straight-line production possibilities frontier, which of the following is true?
a. The problem of scarcity does not exist.
b. Resources are imperfect substitutes.
c. Opportunity costs are constant.
d. Technology is rapidly expanding.
e. Some resources are not being used efficiently.
C
Economics
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In an economic model, an exogenous variable is
A) a stand-in for more complicated variables. B) determined by the model itself. C) determined outside the model. D) a variable that has no effect on the workings of the model.
Economics
Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
Economics