In economic terms associated with employment and unemployment, what would cause an economy to operate inside its production possibilities curve? What would have to change to move it to a point on its production possibilities curve?
Unemployment or underemployment would keep an economy from operating on its production possibilities curve. As the economy reduces its unemployment rate and gets rid of all underemployment, it will move toward full employment and will move to a point on the production possibilities curve.
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Which of the following statements is true?
A) Lower infant mortality rates are always a result of income growth in countries. B) Lower infant mortality rates are related to income growth in countries. C) The higher the income per capita, the higher the infant mortality rate. D) There is no correlation between income per capita and infant mortality rates.
The income effect of a decrease in the price of legal services (a normal good) is a(n)
a. decrease in the demand for legal services b. decrease in the quantity demanded of legal services c. increase in the demand for legal services d. increase in the quantity demanded of legal services e. new demand curve because everything else is no longer constant