All else equal, increases in oil prices tend to increase the quantity of proven oil reserves.
Indicate whether the statement is true or false
Question 2
Which of the following correctly describes the relationship between productivity growth, unemployment, and the economy's production possibilities frontier?
A) An increase in productivity moves the economy from inside the production possibilities set to its frontier.
B) An increase in productivity shifts the economy from the production possibilities frontier to a point outside the production possibilities set.
C) An increase in unemployment shifts the economy further inside its production possibilities set.
D) An increase in unemployment shifts the economy from a point outside the production set back to the production possibilities frontier.
E) A reduction in unemployment shifts the entire production possibilities frontier outward.
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Production and Prices in Richland and Poorland
Scientifically proven!