A- What does it mean for an economy to be operating ON the production possibilities curve?

1- There is unemployment in the economy.

2- An economy can only be inside the curve. It is impossible to be at a point ON the curve.

3- The economy is using all its resources and is working at maximum efficiency.

4- Government spending is zero.

B-A point inside the production possibilities curve illustrates:

Group of answer choices

1- an economic production combination of maximum efficiency or so-called full employment.

2- that resources are not used to their maximum efficiency (unemployment or underemployment of labor or other resources).

3- a production outcome which cannot be achieved at this point in time.

4- a production combination of no inflation and no price changes over time.

C- According to our text, which of the following conditions are most likely to lead to an increase in a country's standard of living and overall productivity in the long run?

Group of answer choices

1- An economic climate with reasonably low taxation and firm, but not overly excessive regulations and a system that rewards profits, hard work and innovation.

2- Government protection of corporations and people, including bailouts, social welfare programs and social welfare reform.

3- A system of universal health care and guaranteed medical services and medicine for everyone.

4- Increases in government spending and decreases in taxation, government deficit spending, and expansionary monetary policy. In other words, government policies that stimulate the economy and encourage spending.

5- An economic system without government presence.