The production possibilities curve illustrates the basic principle that
a. an economy's capacity to produce increases in proportion to its population.
b. if all resources of an economy are in use, more of one good can be produced only if less of another is produced.
c. an economy will automatically seek that output at which all of its resources are employed.
d. no opportunity cost exists in production.
b
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The original mission of the World Bank was to
A) provide capital to underdeveloped countries. B) provide capital to firms around the world. C) provide financial assistance for the reconstruction of war-damaged nations. D) provide a safe place for people around the world to put their money. E) help countries manage their exchange rates.
The actions of the Fed: a. must be approved by the president and Congress
b. must be approved by the president alone. c. must be approved by Congress alone. d. are not subject to approval by any branch of government. e. are subject to the approval of the electorate.