As a general rule, an increase in the capital available to a society
A. reduces the slope of the production possibilities frontier, making it shallower.
B. increases the slope of the production possibilities frontier, making it steeper.
C. shifts the production possibilities frontier outward, away from the origin.
D. shifts the production possibilities frontier inward, toward the origin.
E. makes the production possibilities frontier more bowed out.
Answer: C
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Differences in what can help explain the wage gap between U.S. born and foreign born workers employed in the U.S.?
(a) Gender (b) Schooling (c) Immigration policy (d) All of the above
If the production possibilities curve is a straight line,
a. opportunity costs rise as output of either commodity is expanded. b. resources are not equally productive in the production of both goods. c. opportunity costs are negative. d. resources can be moved from the production of one good to production of others with no loss of productivity.
When the inflationary gap is finally eliminated, a long-run equilibrium is established with a ____ price level and with GDP ____ potential GDP
a. higher; equal to b. higher; greater than c. lower; equal to d. lower; greater than
In the United States, the marginal tax rate on individual federal income tax
a. decreases as income increases. b. increases as income increases. c. is constant at all income levels. d. applies only to payroll taxes.