Refer to the diagram. Increases in the quantity and quality of human resources and capital are best represented by a:
A. shift in the production possibilities curve from AB to CD.
B. move from Y on CD to X on AB.
C. shift in the production possibilities curve from CD to AB.
D. move from X to Z along AB.
A. shift in the production possibilities curve from AB to CD.
You might also like to view...
Which statement is TRUE about a comparison of economic freedom with political freedom?
A) Economic freedom is more important than political freedom when considering positive economic growth. B) Economic freedom leads to positive economic growth while political freedom leads to negative economic growth. C) Political freedom is more important than economic freedom when considering positive economic growth. D) Economic freedom cannot exist without political freedom.
If the world price is below the domestic "no-trade" equilibrium price, then with international trade:
a. the domestic shortage can be eliminated by rationing. b. the domestic surplus can be consumed at home. c. the domestic surplus can be exported to the rest of the world. d. the domestic quantity demanded is equal to that supplied by the world. e. the domestic shortage can be met by foreign imports.
Many economists criticize monopolists because they produce at output levels that are not efficient, that is to say, monopolists
a. charge too high a price b. don't innovate c. produce a large quantity of waste d. usually don't produce at their minimum ATC e. may be profit conscious but they don't realize that maximum profit means maximum efficiency
Other things equal, the stock of capital inherited by future generations is likely to be smaller when government spending:
A. is financed by taxation. B. increases during a period of recession, rather than prosperity. C. is financed by borrowing. D. is primarily for capital-type goods.