The figure above shows a nation's production possibilities frontier for apples and oranges
a) What combination of goods is represented by point A?
b) What combination of goods is represented by point B?
c) Which point represents an unattainable combination of goods?
a) 3 million bushels of apples and 3 million bushels of oranges
b) 3 million bushels of apples and 4 million bushels of oranges
c) Point B is an unattainable point.
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Suppose an individual's MRS (of steak for beer) is 2:1 . That is, at the current consumption choices he or she is willing to give up 2 beers to get an extra steak. Suppose also that the price of a steak is $1 and a beer is $4 . Then in order to increase utility the individual should:
a. buy more steak and less beer. b. buy more beer and less steak. c. continue with current consumption plans.
Assuming an upward-sloping aggregate supply curve, when aggregate demand decreases, unemployment
A. Increases, and the price level decreases. B. Increases, and the price level increases. C. Decreases, and the price level decreases. D. Decreases, and the price level increases.