All of the following are assumptions of the production possibilities curve EXCEPT
A. resources are fully employed.
B. there is a fixed level of technology.
C. there is a fixed demand for the products.
D. there is a fixed time period.
Answer: C
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Use the figure above to answer this question. Consider a perfectly competitive market experiencing good times
Figure ________ shows a firm maximizing profit in the short run because it produces ________ units and makes an economic profit of ________. A) A; 100; $2 per unit B) A; 90; $3 per unit C) B; 100; $0 per unit D) C; 100; $3 per unit E) C; 110; $2 per unit
What were the three shocks that the U.S. economy experienced during 2007-2009, and how did these shocks affect the IS curve, the MP curve, and the Phillips curve?
What will be an ideal response?
Suppose MRS does not equal MRT for all consumers. In this case, the economic outcome is not fully efficient because:
A) exchange is inefficient. B) the use of inputs in production is inefficient. C) the mix of outputs in inefficient. D) none of the above
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What will be an ideal response?