The production possibilities curve is:
a. a graph that shows the combinations of output which are most profitable to produce
b. a graph that shows the various combinations of output it is possible for an economy to produce given its available resources and technology.
c. a graph that shows the various combinations of resources that can be used to produce a given level of output.
d. a curve that shows the quantity of output that will be offered for sale at various prices.
b
You might also like to view...
Saving is a(n) ________ and wealth is a(n) ________.
A. asset; liability B. flow; stock C. liability; asset D. stock; flow
Of the following explanations for why crime fell from 1990 to 2014, which does the Brennan Center suggest had an impact in the 1990s, but not after?
A. Lower rates of incarceration B. Shorter effective sentences C. CompStat usage D. The increase in the number of police
Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X, ceteris paribus.Table 1.3Production Possibilities for Brushes and CombsCombinationNumber of combsOpportunity Cost(Foregone brushes)Number of brushesOpportunity Cost (Foregone combs)J4 0NAK3 10 L2 17 M1 21 N0NA23 On the basis Table 1.3, what is gained by producing at point M rather than point N?
A. 2 combs. B. 23 combs. C. 1 comb. D. 21 combs.
The cyclically adjusted budget deficit calculates the budget surplus or deficit at
A) real GDP. B) potential GDP. C) nominal GDP. D) average GDP.