Which statement is consistent with the tenth principle of economics?

a.If we increase the rate of inflation from 3% to 6%, then the rate of unemployment will temporarily fall.

b.If we increase the rate of inflation from 3% to 6%, then the rate of unemployment will permanently fall.

c.If we increase the rate of inflation from 3% to 6%, then the rate of unemployment will permanently rise.

d.If we increase the rate of inflation from 3% to 6%, then the rate of unemployment will temporarily rise.

Production possibilities frontiers can shift outward

a.if resources can be moved from the production of one good to another.

b.if there is an increase in technology.

c.if opportunity costs are reduced.

d.if government increases the amount of money in the economy.

Regan grows flowers and makes vases. Jayson also grows flowers and makes vases, but Regan is better at producing both. Who has an absolute or comparative advantage in what activity?

a.Jayson has a comparative advantage in growing flowers.

b.Jayson has an absolute advantage in both activities.

c.Regan has a comparative advantage in growing flowers.

d.Regan has an absolute advantage in both activities.

A production possibilities frontier will be linear and not bowed out

a.if the trade-off between the two goods is always at a constant rate.

b.if resources are allocated efficiently.

c.if unemployment is zero.

d.if no trade-offs exist.