QUESTION IMAGE
Question
question 6
an increase in the unemployment rate may be represented as a movement from a point on the production possibilities frontier to a different point on the frontier.
true
false
question 7
if property rights are not well - enforced, all of the following are likely to occur except
fewer goods and services will be produced.
an economy will produce inside its production possibilities frontier.
economic efficiency will be reduced.
a significant number of people will be willing to risk their funds by investing them in local businesses.
question 8
For Question 6: A point on the production - possibilities frontier represents full employment. An increase in unemployment means resources are not fully utilized, so it is a movement from a point on the frontier to a point inside the frontier, not to another point on the frontier.
For Question 7: When property rights are not well - enforced, people are less likely to invest as there is a higher risk of losing their assets. This leads to lower production, production inside the PPF, and reduced economic efficiency. So, the option that a significant number of people will be willing to risk their funds by investing them in local businesses is the one that will not occur.
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Question 6: False
Question 7: A significant number of people will be willing to risk their funds by investing them in local businesses.