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Unformatted text preview: ch consumers are indifferent c. The maximum combinations of products that can be produced with fixed resources and technology d. The maximum rate of growth of capital and labor in an economy over time. Answer: C 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 growth. 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. Whichofthefollowingdecreasesthequantitysuppliedofcompactdiscsbutdoesnot decreasethesupplyofcompactdiscs? a. adecreaseinthenumberofsuppliersofcompactdiscs b. anincreaseinthepriceoftheresourcesusedtoproducecompactdiscs c. a decreaseinthepriceofacompactdisc  d. anincreaseinthepriceofacompactdisc Answer:C  6. This...
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This document was uploaded on 03/13/2014 for the course ECO 221 at Miami University.

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