Suppose the economy goes from a point on its production possibilities frontier (PPF) to a point directly to the left of it. Assuming that the PPF has not shifted, this could be due to
A) a gain of resources.
B) a loss of resources.
C) technological improvement in the production of both goods.
D) a new law that interferes with productive efficiency.
D
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Someone is considered to exhibit risk-seeking behavior if he:
A. has a high willingness to take on situations with risk. B. has a low willingness to take on situations with risk. C. will only participate in high-risk situations. D. will always choose the riskier venture when given two choices.
An economy's PPC illustrates the extent to which the economy consumes what it produces
a. True b. False Indicate whether the statement is true or false
Diminishing marginal returns means that as you combine more units of a variable resource with a set of fixed resources:
a. the average physical product of the fixed inputs increases at an increasing rate. b. the marginal physical product of the variable input decreases. c. the total output decreases. d. the marginal physical product of the variable input increases at a constant rate. e. the marginal physical product of the variable input increases at a decreasing rate.
The inflationary effect of an expansionary monetary policy depends on the slope of the aggregate supply curve
a. True b. False Indicate whether the statement is true or false