Which of the following ideas is illustrated by the production possibilities curve [PPC]?
a. There are no limits on the total production feasible in an economy.
b. An economy need not decrease the production of one commodity to increase the production of another.
c. It is possible to satisfy unlimited wants in an economy through proper investment in research and development.
d. When an economy chooses to produce a combination of goods and services, other combinations of goods and services are sacrificed.
e. An economy can specialize in the production of only one good.
d
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The price of a financial asset equals the
A) future value of all payments B) sum of all payments C) present value of all future payments D) difference between the future value and present value of all payments
To determine the total demand for all consumers, sum the quantity each consumer demands
A) at a given price. B) at all prices and then sum this amount across all consumers. C) Both A and B will generate the same total demand. D) None of the above.
Jason can maximize his satisfaction by allocating time among market work, nonmarket work, and leisure so that the final marginal utilities per hour spent in each activity are identical
a. True b. False
In the above figure, at output levels between 5 units and 13 units
A. the firm is breaking even. B. total revenue equals total costs. C. the firm's economic profits are positive. D. the firm's accounting profits are negative.