The production possibilities curve tells us that if full employment exists and a nation wishes to permanently increase its production of military goods, it must
A. also increase its production of nonmilitary goods.
B. reduce its output of nonmilitary goods.
C. suffer inflation.
D. suffer unemployment.
B. reduce its output of nonmilitary goods.
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If the federal government placed a 50 cent per pack excise tax on cigarette manufacturers, and if as a result, the price to consumers of a pack of cigarettes went up by 40 cents, the:
a. actual burden of this tax falls mostly on consumers. b. actual burden of this tax falls mostly on manufacturers. c. actual burden of the tax would be shared equally by producers and consumers. d. tax would clearly be a progressive tax.
In an inverse relationship
A) one variable rises while the other falls. B) both variables rise together. C) both variables fall together. D) the two variables has not related to each other.