If the production possibilities curve is a straight line,
a. opportunity costs rise as output of either commodity is expanded.
b. resources are not equally productive in the production of both goods.
c. opportunity costs are negative.
d. resources can be moved from the production of one good to production of others with no loss of productivity.
d
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Refer to the diagram. Rational expectations theory says that a fully anticipated shift in aggregate demand from AD 1 to AD 2 will:
A. move the economy from a to b to c.
B. move the economy directly from a to c.
C. move the economy from a to a new equilibrium at b.
D. shift the AS curve to the right.
The experiences of Singapore, Whole Foods Markets, and the State of Indiana all point to one major factor that could reduce, if not eliminate, overconsumption of health care. And that is:
A. Reducing the coverage of insured illnesses B. High out-of-pocket costs to consumers C. Raising the health-insurance premiums D. Privatizing health insurance