A production possibilities curve has a downward slope because
a. increased production of one good always reduces the additional profit of production.
b. decreased production of one good is associated with lower profit from that good.
c. economists have a negative view of life and human nature.
d. increased production of one good always reduces production of the other.
e. increased production of one good necessarily causes production of other goods to increase.
d
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Legislators are not likely to substitute money transfers to low-income people for in-kind benefits (e.g., food stamps, health care) because
A) low-income people generally do not know how to manage money effectively. B) low-income people prefer in-kind transfers. C) special interest groups benefit from the system of in-kind transfers. D) giving cash to the poor would necessitate a tax increase.
The impact of an increase in oil prices stemming from the growth of demand is probably going to ____ the wages of petroleum engineers.
A. decrease B. increase C. leave unaffected D. be impossible to predict
Keynes called the money people hold in order to pay unforeseen or unexpected expenses the:
A. transactions demand for holding money. B. precautionary demand for holding money. C. speculative demand for holding money. D. store of value demand for holding money.
Why is there a supply curve in pure competition but no supply curve in pure monopoly?
What will be an ideal response?