TRUE OR FALSE 1. If an economy is operating inside its production possibilities curve, it is not at full capacity, and is operating inefficiently. Such an economy's actual output is less than potential output. 2. By putting unemployed resources to work or by putting already employed resources to better uses, we could expand output in an economy. 3. To generate increasing economic growth, a society would produce fewer capital goods and more consumer goods in the present. 4. A point beyond the boundary of an economy's production possibilities curve is both attainable and efficient. 5. An inefficient allocation of resources or unusually high unemployment can each be illustrated by
TRUE OR FALSE 1. If an economy is operating inside its production possibilities curve, it is not at full capacity, and is operating inefficiently. Such an economy's actual output is less than potential output. 2. By putting unemployed resources to work or by putting already employed resources to better uses, we could expand output in an economy. 3. To generate increasing economic growth, a society would produce fewer capital goods and more consumer goods in the present. 4. A point beyond the boundary of an economy's production possibilities curve is both attainable and efficient. 5. An inefficient allocation of resources or unusually high unemployment can each be illustrated by
Chapter8: Productivity And Growth
Section: Chapter Questions
Problem 1.2P
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