A technological improvement can cause the production possibilities curve to shift outward because
A) it increases costs and contributes to lower production rates.
B) maximum feasible outputs of both goods increase.
C) production will fall, but jobs will be saved.
D) it causes increases in unemployment.
B
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An unemployed person is
A. one who is eligible to work but chooses not to work. B. one who is not working. C. a person without a job who is actively seeking and available for work. D. one who can only find jobs that are below his abilities.
To deter a potential entrant, an existing firm in a market may threaten to sharply increase production so that the entrant will be left with a small share of the market. This may be a credible threat if:
A) production exhibits economies of scale. B) production exhibits diseconomies of scale. C) production costs may fall due to learning-by-doing. D) A and C are correct. E) B and C are correct.