The production possibilities frontier assumes all of the following except
A) labor, capital, land and natural resources are fixed in quantity.
B) the economy produces only two products.
C) any level of the two products that the economy produces is currently possible.
D) the level of technology is fixed and unchanging.
Answer: C
You might also like to view...
Suppose the automobile industry can import 10% of the total quantity demanded of cars in the U.S. This is an example of a(n) ________.
A. import tax B. tariff C. quota D. trade limit
? In Figure 5-16, Adam is
A. better off at C than at D and able to afford either C or D. B. better off at D than at C but only able to afford C. C. equally well off at C and D and able to afford either C or D. D. equally well off at C and D but only able to afford C.
Which of the following is a rare occurrence in case of poor performance by a company?
A. Firing the CEO B. Firing the lower-level management C. Firing the middle management D. Firing a few managers from the senior management
If the supply curve for land was a vertical line, then any payment made for land would be considered
A) as economic rent. B) as economic lease. C) as economic interest. D) as an opportunity lease payment.