The reason the production possibilities curve is bowed outward (concave) is
A. that the number of resources is increasing.
B. that technology is constantly changing.
C. that the economy has more capital goods than entrepreneurial effort.
D. the law of increasing additional cost.
Answer: D
You might also like to view...
The most popular movie stars have high incomes for a number of reasons. One such reason is
a. an ability for almost everyone to enjoy movies at a relatively low cost. b. the above-average intellect of the average movie star. c. a compensating differential. d. a lack of technological advances in the movie industry.
Which of the following is a good gauge of economic progress?
a. the level of real GDP per person, but not the growth rate of real GDP per person b. the level of real GDP per person and the growth rate of real GDP per person c. the growth rate of real GDP per person, but not the level of real GDP per person d. neither the level nor the growth rate of real GDP per person
An increase in the capital stock would be expected to
A. decrease the labor force. B. increase the level of output. C. decrease real GDP per capita. D. increase real GDP per capita.
Refer to the information provided in Figure 28.4 below to answer the question(s) that follow.
Figure 28.4Refer to Figure 28.4. If the demand for labor ________ and wages are sticky on the downward side, there will be unemployment of 150 million.
A. remains at D' B. rises from D' to D C. falls from D D. falls from D to D'