Assume an Economy Is Incurring Unemployment

question 76

Multiple Choice

Assume an economy is incurring unemployment. The effect of resolving this problem will be to

• A) move the level of actual output closer to the economy's production possibilities curve.
• B) create a less equal distribution of income.
• C) shift its production possibilities curve to the left.
• D) shift its production possibilities curve to the right.

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Definitions:

Total Revenue Curve

A graphical representation showing how a firm’s total revenue changes with variations in the quantity of product sold.

Linear

A relationship or function that can be graphically represented in two dimensions as a straight line, implying a constant rate of change.

Profit Maximizing

The procedure by which a company figures out the ideal price and level of production for maximizing earnings.

Total Revenue

Total revenue refers to the overall amount of money generated by a business from its sales activities before any expenses are subtracted.