When an Economy's Resources Are Not Fully Employed, Then It

question 71

Multiple Choice

When an economy's resources are not fully employed, then it must be true that the:

• A) production point is located outside and to the right of the production possibilities curve.
• B) production point is located along the production possibilities curve.
• C) production point is located inside and to the left of the production possibilities curve.
• D) production possibilities curve shifts to the right.
• E) production possibilities curve shifts to the left.

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Definitions:

Equal Dignity Rule

A legal doctrine requiring that contracts authorizing someone to conduct a transaction must be executed with the same formality as required for the transaction itself.

Statute of Frauds

A legal doctrine requiring certain types of contracts, such as for the sale of land or goods over a certain value, to be in writing to be enforceable.

Respondeat Superior

A legal doctrine holding employers liable for wrongful acts committed by employees while performing their job duties.

Independent Contractor

A person or entity contracted to perform work for another entity as a non-employee, responsible for their own taxes and benefits.