The following economy produces two products.ProductsProduction Possibilities?ABCDEFTanks012345Autos10009508506503500Refer to the above table. According to the production possibilities schedule, a combination of four tanks and 650 autos is:
A. not attainable because society does not have sufficient resources to produce this combination.
B. not attainable because it is not listed in the schedule.
C. attainable and involves an efficient use of society's resources.
D. attainable, but would not be in the best interests of a strong national defense.
Answer: A
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When an economist says that the demand for a product has increased, this means that:
A. consumers are now willing to purchase more of this product at each possible price. B. the product has become particularly scarce for some reason. C. product price has fallen and, as a consequence, consumers are buying a larger quantity of the product. D. the demand curve has shifted to the left.
In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices. B. lower prices. C. lower output. D. None of these is true.