Answer the following questions true (T) or false (F)
1. If additional units of a good could be produced at an increasing opportunity cost, the production possibilities frontier would be linear.
2. On a diagram of a production possibilities frontier, economic growth is represented by the slope of the production possibilities frontier.
3. An increase in the unemployment rate may be represented as a movement from a point on the production possibilities frontier to a point inside the frontier.
1. FALSE
2. FALSE
3. TRUE
You might also like to view...
If a significant portion of firms in the economy does not adjust product prices, a predicted result according to new Keynesian theory is
A) real inflation cycles. B) inflation dynamics. C) real business cycles. D) output dynamics.
The statement that "increases in the tax on gasoline increase the price of gasoline" is an example of a
A) marginal statement. B) normative statement. C) rational-decision statement. D) macroeconomic statement. E) positive statement.