Suppose the Economy Is at Its Potential Output Level

question 114

Multiple Choice

Suppose the economy is at its potential output level.Which of the following best characterizes how the economy is producing?  

• A) The economy is producing less than it is capable of producing. 
• B) The economy is producing the maximum it can produce given resource constraints. 
• C) The economy is producing beyond its productive capacity. 
• D) The economy is producing at its minimum capacity.

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Definitions:

Mousterian Tool Tradition

The tool industry of the Neandertals and their contemporaries of Europe, Southwest Asia, and North Africa from 40,000 to 125,000 years ago.

Pressure-Flaking

A technique used in stone tool making where materials are shaped by the application of pressure to flake off small pieces.

Multiregional Hypothesis

The hypothesis that modern humans originated through a process of simultaneous local transition from Homo erectus to Homo sapiens throughout the inhabited world.

Recent African Origins Hypothesis

The hypothesis that modern humans are all derived from one single population of archaic Homo sapiens who migrated out of Africa after 100,000 years ago, replacing all other archaic forms due to their superior cultural capabilities; also known as the Eve hypothesis or the out of Africa hypothesis.