The Production Possibilities Curve Tells Us That If Full Employment

question 50

Multiple Choice

The production possibilities curve tells us that if full employment exists and a nation wishes to permanently increase its production of military goods,it must

• A)also increase its production of nonmilitary goods.
• B)reduce its output of nonmilitary goods.
• C)suffer inflation.
• D)suffer unemployment.

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Definitions:

Stimulus

An external event or condition that influences an organism's behavior or physiological response.

Response

A reaction or reply to a stimulus or situation.

Conditioned Stimulus

A neutral stimulus that, once linked with an unconditioned stimulus, ultimately initiates a conditioned response.

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without prior learning or conditioning.