An increase in an economy's productive resources
a. implies that the law of increasing costs no longer applies.
b. shifts its production possibilities curve inward.
c. shifts its production possibilities curve outward.
d. has no effect on its production possibilities curve.
c. shifts its production possibilities curve outward.
You might also like to view...
Which of the following terms describes the situation in which too few or too many resources go to a specific economic activity because of external benefits or costs?
A) an technologically inefficient market B) a market failure C) a laissez-faire market D) an external market
A key to creating effective policy to fight poverty is to understand:
A. why people are poor. B. the correlation between education and income. C. the correlation between income and geographic location. D. the unintended consequences of reductions in the incentive to work.
Which of the following is true?
a. Producing too much pollution could be a market failure, but producing too little research cannot. b. Producing too little research could be a market failure, but producing too much pollution cannot. c. Both producing too much pollution and producing too little research could be market failures. d. Market failures mean that government intervention in those areas will improve the results.
Assume that India has a comparative advantage in producing a computer game. The United States has an absolute advantage in producing the same game. Mutually advantageous trade will have India producing and exporting the game while the United States will specialize in producing something else
a. True b. False