A movement from point F to point D in Figure 1.3 results in
A. More efficient production.
B. A reallocation of resources from broom production to mop production.
C. Permanent unemployment of workers producing brooms.
D. A reallocation of resources from mop production to broom production.
Answer: B
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The CPI in 1970 was 38.8 and in 1998 the CPI was 163.0. If the real value of a 1970 gallon of milk in terms of 1998 dollars is $0.70, what was the nominal price of milk in 1970?
What will be an ideal response?
Improving the education level of the labor force will
A. shift the production possibilities curve inward. B. not shift the production possibilities curve since the total size of the labor force has not been changed. C. shift the production possibilities curve outward. D. cause a movement from a point inside the production possibilities curve to a point on the curve.