The reason that the production possibilities curve is usually a bow-shaped curve instead of a straight line is that
a. it makes it easier to illustrate the concepts of scarcity and prices with a bow-shaped curve than it is with a straight line
b. early economists began drawing them in this way and the convention has continued throughout the years
c. output eventually reaches a maximum and then declines
d. resources are not perfectly adaptable to the production of all goods
D
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How does an increase in the price level affect the aggregate quantity of goods and services demanded?
What will be an ideal response?
One of the negative side effects of financial globalization is that national economic policies lack the discipline that they did in the past
Indicate whether the statement is true or false
_____________ advantage can be the result of a country’s natural endowment.
a. Absolute b. Real c. Focused d. Micro
The price of services at Urban General falls by 10 percent.
a. Quantity demanded increases by 1.5 percent. b. Quantity demanded falls by 5.0 percent. c. Quantity demanded increases by 15.0 percent. d. Quantity demanded falls by 2.5 percent. e. Quantity demanded rises by 5.0 percent.