Which of the following is true of a production possibilities curve?
a. It reveals the maximum amount of any two goods that can be produced from a fixed quantity of resources.
b. It reveals the ideal level of technology for a country.
c. It assumes that the prices of the two products are equal.
d. For a country that could produce many different goods, it shows which two goods are most important to produce.
A
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Explain whether the statement "The government should increase tariffs on Japanese cars to protect the American car industry from competition," is a normative or positive statement
What will be an ideal response?
In 1933, net private domestic investment was a minus $6.0 billion. This means that:
a) gross private domestic investment exceeded depreciation by $6.0 billion. b) the economy was expanding in that year. c) the production of 1933's GDP used up more capital goods than were produced in that year. d) the economy produced no capital goods at all in 1933.
The scarcity problem
A. has been solved in all industrialized nations. B. persists only because countries have failed to achieve continuous full employment. C. has been eliminated in affluent societies such as the United States and Canada. D. persists because economic wants exceed available productive resources.
If the price elasticity is supply coefficient is greater than one, then supply is:
A. elastic. B. inelastic. C. perfectly elastic. D. perfectly inelastic.