Which set of items in the list would move an economy from a point inside its production possibilities curve to a point on its production possibilities curve?
Use the list below to answer the following question:
1. Improvements in technology.
2. Increases in the supply (stock) of capital goods.
3. Purchases of expanding output.
4. Obtaining the optimal combination of goods, each at least-cost production.
5. Increases in the quantity and quality of natural resources.
6. Increases in the quantity and quality of human resources.
A. 1, 2, 5, and 6 only.
B. 3 and 4 only.
C. 3 only.
D. 1, 3, and 4 only.
B. 3 and 4 only.
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As long as both current and future consumption are normal goods, a decrease in the interest rate will result in a drop in savings.
Answer the following statement true (T) or false (F)
If Japan is relatively capital rich and the United States is relatively land rich, and if food is relatively land intensive then trade between these two, formerly autarkic countries will result in
A) an increase in the relative price of food in the U.S. B) an increase in the relative price of food in Japan. C) a global increase in the relative price of food. D) a decrease in the relative price of food in both countries. E) an increase in the relative price of food in both countries.
Briefly explain why gross domestic product is not a welfare measure
What will be an ideal response?
When profits occur in a competitive market, this indicates that
a. consumers value the goods more than the resources used to produce them. b. producers value the goods more than the resources used to produce them. c. producers value the goods more than consumers value the goods. d. consumers value the goods less than the resources used to produce them.