Which of the following statements about production possibilities is true?
A.) Production possibilities are limited for all countries because resources are scarce.
B.) The production of food does not involve opportunity costs since people must eat.
C.) A reduction in productivity will expand the production possibility curve.
D.) Production possibilities are only limited for a country if prices are too high.
A.) Production possibilities are limited for all countries because resources are scarce.
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Assume the market basket for the consumer price index has two productsbread and milkwith the following values in 2011 and 2016 for price and quantity: The Consumer Price Index for 2016 equals
A. 118.
B. 116.
C. 86.
D. 85
If another worker adds 9 units of output to a group of workers who had an average product of 7 units, then the average product of labor
A) will decrease. B) will remain the same. C) will increase. D) and what will happen to it cannot be determined.
The theory of comparative advantage suggests that nations should produce a good if they:
a. have the lowest opportunity cost. b. have the lowest wages. c. have the most resources. d. can produce more of the good than any other nation.
The federal funds rate is not just targeted by the Fed but is determined by the Fed. Market forces are irrelevant
a. True b. False