The figure above illustrates that if this country wishes to have F2 - F1 additional food by moving from point A to point B, it will
A) have to find additional workers, because the country already is operating on its production possibilities frontier.
B) be unable to do so until additional technological progress is made.
C) have to sacrifice C1 - C2 clothing in order to free the resources necessary to produce the additional food.
D) require that all the unemployed resources in the country be put to work.
C
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Imagine a hypothetical world in which, over the last fifty years, both real GDP and prices have trended downward in most countries. Continuing falls in the level of real GDP and the price level can be explained by
a) neither technological ability nor changes in the money supply can explain continuing falls in the level of real GDP contraction and the price level. b) continuing losses in technological ability alone. c) continuing losses in technological ability and continuing decreases in the money supply. d) continuing decreases in the money supply along.
Which of the following countries began liberal economic reforms during the 1980s and now have significantly more economic freedom than during the mid-1980s?
a. Ireland and New Zealand b. France and Italy c. Sierra Leone and Haiti d. United States and Germany