An analysis of production possibilities curves indicates that the reason why underdeveloped nations have difficulties increasing their economic growth rates is because:
A. low population growth rates mean fewer workers to produce food and other necessities.
B. their production possibilities curves shift in when resources are increased.
C. the opportunity cost of shifting resources from consumption goods to capital goods is relatively low.
D. they must cut back their already meager consumption levels to increase capital production.
Answer: D
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A) $52 each B) $18 each C) $60 each D) $12 each E) $20 each
A firms' total cost is $500 when its quantity is 80 units. Its total cost increases to $510 when its quantity increases to 81 units. What is the firm's marginal cost?
a. 6.25 b. 10 c. 5 d. 6.29 e. none of the above
In order to prosper, entrepreneurs in a market economy must
What will be an ideal response?
In a laborabundant country, free trade will cause a(n) __________ in the rental of capital and a(n) _________ in the marginal product of capital.
a. increase; increase b. increase; decrease c. decrease; decrease d. decrease; increase