How might a country consume a bundle of goods that lies above its production possibilities curve?
• The unemployment rate would have to fall toward the current full-employment level. • The country could discover new supplies of natural resources. • The country could engage in free trade with other countries. • All of the above. • Both B and C. • Referring to Figure 1, which of the following statements is false? • Point D indicates an inefficient use of resources and the presence of unemployment. • Point E is unobtainable because such a combination of goods is beyond society’s current productive capabilities. • The opportunity cost of producing one more pizza increases as more pizzas are produced. • Resources in the economy are not specialized and resources can be freely moved between the production of pizzas and CDs. • In drawing the production possibilities curve in Figure 1, the supply of resources is assumed to be constant and technology is fixed. • According to Figure 2, the shift of the production possibilities curve from curve A to curve B was most likely caused by which of t
