As a general rule, an increase in the capital available to a society
a. reduces the slope of the production possibilities frontier, making it shallower.
b. increases the slope of the production possibilities frontier, making it steeper.
c. shifts the production possibilities frontier outward, away from the origin.
d. shifts the production possibilities frontier inward, toward the origin.
e. makes the production possibilities frontier more bowed out.
c
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If an economy is operating __________ its institutional production possibilities frontier, it is producing __________ output than it would be at full employment
A) below; less B) below; more C) above; less D) above; more E) a and d
The pattern in which insurance is purchased more frequently by those who are the most costly for companies to insure is referred to as:
A. risk aversion. B. statistical discrimination. C. moral hazard. D. adverse selection.