One of the assumptions underlying the production possibilities curve is that
A. there is at least one factor of production that is employed inefficiently.
B. the quantity of the resources available for the production of economic goods is fixed over a given time period.
C. at least one of the factors of production is a free good.
D. some of the factors of production are not being used.
Answer: B
You might also like to view...
An increase in the unemployment rate which is accompanied by a decrease in the inflation rate is represented by a ________ the Phillips curve
A) movement down B) movement up C) upward shift of D) downward shift of
The analytical framework in which two or more firms compete for certain payoffs that depend on the strategy that the others employ is
A) game theory. B) the concentration ratio. C) a horizontal merger. D) network effect.
The federal government funds deficit spending by: a. issuing bonds
b. redeeming bonds. c. increasing taxes. d. providing and selling government services.
The purpose of an initial public offering is to
A. Borrow funds for investment and growth. B. See if there is a demand for a company's new product. C. Raise funds for investment and growth by selling shares of the company to the public. D. Change the membership of the board of directors.