The Great Depression of the 1930s, with a large number of workers and factories unemployed, would be represented in a production possibilities frontier by
A) a point inside the frontier.
B) a point outside the frontier.
C) a point on the frontier.
D) an intercept on either the vertical or the horizontal axis.
Answer: A
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Which of the following are predicted by the classical growth theory?
i. Population growth will end economic growth. ii. Real GDP per person will return to subsistence level. iii. Technology drives persistent economic growth. A) i only B) ii only C) i, ii and iii D) i and iii E) i and ii
Assume an analyst has been hired to estimate the price elasticity of demand for Levi's brand blue jeans and for blue jeans in general. Ceteris paribus, we would expect the price elasticity of demand in absolute value to be:
A) larger for Levi's brand blue jeans than for blue jeans in general. B) larger for blue jeans in general than for Levi's brand blue jeans. C) approximately the same for both Levi's brand blue jeans and blue jeans in general. D) none of the above because the market for blue jeans cannot be analyzed using the model of supply and demand.