Exhibit 2-7 Production possibilities curve
For the economy shown in Exhibit 2-7 to operate at point C, it must:
A. be willing to lower the price of grain.
B. use its given resources more efficiently than it would at point A.
C. experience resource unemployment.
D. experience an increase in its resources and/or an improvement in its technology.
Answer: D
Economics
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If we take into account transfer payments (TR) when we derive the saving and investment relationship, the saving and investment equation becomes
A) S = I + NFI + TR. B) S + TR = I + NFI. C) S = I + NFI. D) S = I + NX - TR.
Economics
Chandler (1994) maintains that domestic labor productivity has a tendency to dip with
(a) a decrease in the variety and number of new goods and services. (b) flat consumer demand. (c) increased foreign competition. (d) all of the above.
Economics