Question

True-False-NotGiven and please Explain why. Thank you very much

1. Economic resources are classified into one of four categories: land, labor, capital, and machinery.
2. A society that is operating at a point outside its production possibilities frontier is using its economic resources inefficiently.
3. The American economy is referred to as a centrally planned economy because the federal government makes most of the economic decisions.
4. A decrease in the price of a good will cause the demand curve for that good to shift to the right.
5. If the price elasticity of demand for a good is elastic, as it is for movie tickets, then an increase in the price of movie tickets will increase total expenditures on the good.

Answer 1

a) False

the economy is classified into land, labor, capital and enterprise not machinery.

b) False

If the economy is producing outside the PPF then it is most efficient and producing beyond its means. its not inefficient.

c) False

American economy is market economy as market decides all the thing, Venezuela and Cuba are centrally planned economy.

d) false

A decrease in the price of the good will only cause a movement along the demand curve and not shift the demand curve.

e) "false"

if the price is demand elastic then a total increase will not increase the expenditure but the demand will decrease.