Economics EOCT Review
Which of the following is a likely result of a high unemployment rate in the United States? A) increased demand for consumer goods B) increased production of capital goods C) increased revenues D) greater government expenditures for transfer payments When more people are unemployed, the government must provide more in the way of social services (transfer payments). Therefore high unemployment usually results in greater government expenditures for transfer payments.
The graph is a production possibilities chart. Which of the following might cause the line to move to the right? A) an increase in prices B) shortage of required resources C) improved technology in whoopee cushion production D) higher labor costs If the production possibilities line "expands" (moves to the right), production is increased. Improved technology in whoopee cushion production might cause such an increase.