The production possibilities curve illustrates: a. the minimum ...

[Kthamas]

The production possibilities curve illustrates:
 a. the minimum quantity of two resources necessary to produce a given level of output.
 b. that when resources are currently being used inefficiently, it is possible to increase production of one good only by sacrificing some of another good.
  c. that when resources are currently being used efficiently, it is possible to increase production of one good only by sacrificing some of another good.
  d. the minimum quantities of output that can be produced using available resources.

Question 2

Which of the following is likely to increase the equilibrium real interest rate?
 a. greater tax benefits for IRAs
 b. technological improvement creating profitable investment opportunities
  c. elimination of an investment tax credit for corporations
 d. an increased consumption tax

[nyrave]

Answer to Question 1

c

Answer to Question 2

b