When a country's production possibilities frontier shifts outward over time, the country is experiencing
A) no opportunity cost.
B) economic growth.
C) higher unemployment of resources.
D) a decrease in unemployment of resources.
E) an end to opportunity cost.
Answer: B) economic growth.
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In the multiple-polluter case for a pollution permit system, suppose Firm 1 and Firm 2 face marginal abatement cost functions of MAC1 = 4.5A1 and MAC2 = 2.25A2, respectively. If the government issues each firm tradeable pollution permits such that each has to abate 10 units of pollution, then, based on this allocation,
a. the two firms have no incentive to trade b. firm 1 has an incentive to buy a permit if the price is greater than $45 c. firm 2 has an incentive to buy a permit if the price is above $22.50 d. firm 2 will be willing to sell a permit if the price is above $22.50
Outcomes are fair according to the
A) rules view if private property rights are established and trade is voluntary. B) results view if private property rights are established and trade is voluntary. C) rules view if there is not too much inequality. D) results view if there is not a big tradeoff. E) results view if there is equality of opportunity.
The term market refers to the:
A. physical location where buyers and sellers meet to exchange goods for money. B. buyers and sellers who trade a particular good or service, not to a physical location. C. location where buyers go to fulfill their wants and needs. D. physical or virtual place of exchange.
Identify the correct statement from the following
a. A worker's wage line and productivity line over his lifetime are parallel to each other. b. The wage line of a worker's lifespan is an upward sloping straight line. c. The productivity line of a worker's lifespan rises at a decreasing rate. d. A worker's wage is always equal to his productivity.