Author Question: A production possibilities curve is negatively sloped because: a. unemployment increases as an ... (Read 94 times)

Starlight · **on:** Jun 30, 2018

A production possibilities curve is negatively sloped because:
a. unemployment increases as an economy moves down along the curve.
b. along the curve, production of one good must be sacrificed in order to increase production of another.
c. unemployment decreases as an economy moves down along the curve.
d. as the price falls, more goods are purchased.

Question 2

If input prices adjusted just as quickly as output prices, the profit effect leading to an increase in RGDP supplied would disappear.
a. True
b. False
Indicate whether the statement is true or false