An economy may be operating at a point inside the production possibilities curve if:
a. technological progress enables the economy to produce quantities of output otherwise unattainable.
b. a substantial amount of labor is unemployed

The adverse supply shocks experienced during the 1970s strengthened the Philips Curve relationship between inflation and unemployment

Indicate whether the statement is true or false

To be as well off as possible, a nation should produce

a. only those goods that its populace desires. b. the good within its productive capabilities that commands the highest price in the world market. c. the good that requires the fewest resources to produce. d. whatever good it can produce at a cost lower than that incurred by other nations.