The country whose production possibilities frontier is ...

[gonzo233]

The country whose production possibilities frontier is illustrated above is currently at position A on the production possibilities frontier. If it wishes to move to position B, it will
 
  A) find this change impossible to achieve given the resources it currently possesses.
  B) have to employ all currently unemployed resources to accomplish this.
  C) incur an opportunity cost of having to give up some butter in order to make the additional amount of guns desired.
  D) be able to make the desired switch only if there is a significant improvement in the technology available to the nation.

Question 2

In late 2006, the unemployment rate increased from 4.4 percent to 4.5 percent. It was reported that new jobs were created in several sectors including accounting, engineering services, computer design and education.
 
  These increases offset job losses in the construction and automobile industries. At the same time, the natural unemployment rate was estimated to be about 5.5 percent www.nytimes.com, 12/9/2006 Based on the story, the labor market reflects A) a positive output gap.
  B) a negative output gap.
  C) cyclical unemployment.
  D) efficiency wages.

[lindahyatt42]

Answer to Question 1

C

Answer to Question 2

A

[gonzo233]

Correct answers!

[lindahyatt42]

Great! Please up vote