1. As a general rule, an increase in the capital available to a society
a. reduces the slope of the production possibilities frontier, making it shallower.
b. increases the slope of the production possibilities frontier, making it steeper.
c. shifts the production possibilities frontier outward, away from the origin.
d. shifts the production possibilities frontier inward, toward the origin.
2. A market system (market economy) depends on the market to
a. find the most efficient way of using resources.
b. determine how large the budget deficit should be.
c. decide how much government regulation there should be.
d. provide minimum incomes for everyone.