If Sam is producing at a point on his production possibilities frontier, then he

a) is unaffected by costs and technology.

b) cannot produce any more of either good.

c) is not subject to scarcity.

d) can produce more of both goods.

e) can increase the production of one good only by decreasing the production of the other.

Unemployment caused by permanently decreased demand for horse-drawn carriages is an example of

a) discouraged unemployment.

b) frictional unemployment.

c) structural unemployment.

d) old-fashioned unemployment.

e) cyclical unemployment.

The production possibilities frontier

a) illustrates why there need not be any scarcity in the world.

b) is the boundary between attainable and unattainable levels of production.

c) shows how production increases as prices rise.

d) is the boundary between what we want to consume and what we want to produce.

e) shows prices at which production is possible and impossible.

The labour force participation rate is

a) equal to the employment rate plus the unemployment rate.

b) the percentage of the labour force who are employed.

c) the percentage of the working-age population who are either unemployed or employed.

d) the percentage of the working-age population who are employed.

e) the percentage of the labour force who are unemployed or employed.