1) Both country 1 and country 2 are located on their respective production possibilities frontiers (PPFS),...

 

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1) Both country 1 and country 2 are located on their respective production possibilities frontiers (PPFS), but country 1 produces twice the output that country 2 produces. It follows that A) Country 1's PPF lies further to the right than country 2's PPF. B) Country 1 has a smaller population than country 2. C) Country 1 has a bigger population than country 2. D) Country 2's PPF lies further to the right than country 1's PPF. 2) When the economy is operating at a current unemployment rate below the long-run natural unemployment rate, A) Actual output is above potential output. B) Actual output equals potential output. C) Actual output is below potential output. D) Frictional unemployment has been eliminated. 3) When the current economy operates beyond its natural rate output level, economists expect that unemployment rates in respects Will be to their historical rates, respectively. and inflation rates will be A) low; high B) low; low C) high; high D) high; low 4) If there is a shortage of parking spaces on campus, economists would argue that it is because A) There are not enough spaces. B) The price of the spaces is below equilibrium. C) The price of the spaces is above equilibrium. D) Classes are not rationally scheduled based on demand. I End of document 1) Both country 1 and country 2 are located on their respective production possibilities frontiers (PPFS), but country 1 produces twice the output that country 2 produces. It follows that A) Country 1's PPF lies further to the right than country 2's PPF. B) Country 1 has a smaller population than country 2. C) Country 1 has a bigger population than country 2. D) Country 2's PPF lies further to the right than country 1's PPF. 2) When the economy is operating at a current unemployment rate below the long-run natural unemployment rate, A) Actual output is above potential output. B) Actual output equals potential output. C) Actual output is below potential output. D) Frictional unemployment has been eliminated. 3) When the current economy operates beyond its natural rate output level, economists expect that unemployment rates in respects Will be to their historical rates, respectively. and inflation rates will be A) low; high B) low; low C) high; high D) high; low 4) If there is a shortage of parking spaces on campus, economists would argue that it is because A) There are not enough spaces. B) The price of the spaces is below equilibrium. C) The price of the spaces is above equilibrium. D) Classes are not rationally scheduled based on demand. I End of document

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Answer 1 D 2 A 3 B 4 C Explanation 1 D is the correct answer because it represents the relationship between country 1s output and country 2s output Co... View the full answer