Unformatted text preview: ch consumers are indifferent
c. The maximum combinations of products that can be produced with fixed resources and
d. The maximum rate of growth of capital and labor in an economy over time.
4. Refer to the above diagram, which statement is incorrect?
a. Resources are equally suited for alternative uses.
b. If the economy chooses to produce at point A, it will achieve the most rapid rate of
c. If the economy moves from point C to A along the PP1, it will achieve the most rapid
rate of growth.
d. If the economy is at point D, it will experience unemployment.
Answer: A 5. Which of the following decreases the quantity supplied of compact discs but does not
decrease the supply of compact discs?
a. a decrease in the number of suppliers of compact discs
b. an increase in the price of the resources used to produce compact discs
c. a decrease in the price of a compact disc
d. an increase in the price of a compact disc
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This document was uploaded on 03/13/2014 for the course ECO 221 at Miami University.
- Spring '14