The bowed shape of the production possibilities frontier can be explained by the fact that
a. all resources are scarce.
b. economic growth is always occurring.
c. the opportunity cost of one good in terms of the other depends on how much of each good the economy is producing.
d. the only way to get more of one good is to get less of the other.
c
You might also like to view...
The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
Limited government licenses that create a monopoly do so because
A) the license generates a marginal cost advantage. B) the monopoly will become a natural monopoly. C) a barrier to enter the market exists. D) All of the above.
A perfectly elastic long-run supply curve indicates
A) a decreasing-cost industry. B) a constant-cost industry. C) an increasing-cost industry. D) that some input prices change as firms enter and exit the industry.
The U.S. government need never default on its debt because
a. it can easily nationalize banks, who own all the debt, and then owe it to itself. b. it can raise the funds it needs to repay by taxation, and it can print money to repay. c. it owes the debt to itself, and it can always ignore a demand for repayment. d. it can simply reduce spending enough to generate funds to repay its debt.