A. points outside the production possibility curve
B. either points inside or outside the production possibility curve.
C. points on the production possibility curve
D. points inside the production possibility curve.
Related Mcqs:
- If injections are less than withdrawals at the full-employment level of national income, there is ?
A. an inflationary gap
B. hysteresis
C. A deflationary gap
D. hyperinflation - Which approach predicts that is an economy operates a full employment and faces trade deficit currency devaluation will improve the trade balance only if domestic spending is cut thus freeing resources to produce exports ?
A. the absorption approaches
B. the Marshall Lerner approach
C. the monetary approach
D. the elasticities approach - If Pakistani citizens become less concerned with the future and save less at each real interest rate ?
A. Real interest rates rise and investment falls
B. Real interest rates rise and investment rises
C. Real interest rates fall and investment rises
D. Real interest rates fall and investment falls - Less demand in the economy may increase unemployment; this may lead to less spending which may reduce demand further. This is called ?
A. The upward accelerator
B. The downward multiplier
C. The upward PPF
D. The downward mpc - Most of Latin America has been characterized by ______ large land-grand estates owned by the few and ________ small poor holdings that rarely provide adequate employment for a family ?
A. multitudinous latitudinous
B. latifundios, minifundios
C. feudum, nocere
D. grameen, repetto - A group of modern economists who believe that markets clear very rapidly and that expanding the money supply will always increase prices rather than employment are the ?
A. Keynesians
B. post-keynesians
C. monetarists
D. new classical school - According to classical models, the level of employment is determined primarily by ?
A. the level of aggregate demand for goods and services.
B. prices and wages
C. interest rates
D. the quantity of money - By using fiscal policy, i (e) varying ______ and/or _____ governments achieve goals for output and employment growth as well as price stability?
A. demand pull inflation tax elasticity
B. interest rates, financial liberalization
C. interest rates, tax rates
D. tax rates, government spending - Which of the following is not a method firms use to avoid the moral hazard problem in the employment relationship ?
A. They pay employees with delayed compensation such as a year-end bonus
B. They buy life insurance on their workers
C. They pay above equilibrium wages
D. They put hidden video cameras in the workplace - The abolition of income tax would probably ______ the number of workers in employment and _______ the equilibrium rate of unemployment?
A. increase reduce
B. increase, increase
C. reduce, increase
D. reduce, reduce
