When economic growth occurs, the
A) economy moves along its production possibilities frontier.
B) production possibilities frontier shifts outward.
C) production possibilities frontier becomes steeper.
D) production possibilities frontier shifts outward but no longer limits the amount that can be produced.
B
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Why is the demand for a perfectly competitive firm's good perfectly elastic even though the market demand is not?
What will be an ideal response?
According to monetarists, the Great Depression in the United States largely resulted from:
A. contractionary fiscal policy. B. excessive imports relative to exports. C. significant changes in technology and resource availability. D. inappropriate monetary policy.
A patent grants an inventor exclusive rights to a product for how long?
A) 14 years B) 17 years C) 20 years D) the lifetime of the product
If the rate of return on the stock market is rm and the rate of return on a risk-free asset is rf, then
A) rm - rf measures the risk, all of it nondiversifiable, one has to accept in the stock market. B) rm - rf measures the risk, all of it diversifiable, one has to accept in the stock market. C) rm + rf measures the risk, all of it nondiversifiable, one has to accept in the stock market. D) rm + rf measures the risk, all of it diversifiable, one has to accept in the stock market. E) rm rf measures the stock market's total risk.