Economists believe that production possibilities frontiers are often bowed because
a. trade-offs inevitably create unemployment.
b. resources are not completely adaptable.
c. opportunity costs are constant.
d. of improvements in technology.
b
You might also like to view...
Explain the trade-off between equity and economic efficiency inherent in the welfare system.
What will be an ideal response?
If hot dogs are an inferior good, an increase in income will result in
A, an increase in the quantity demanded for hot dogs B. an increase in the demand for hot dogs C. a decrease in the quantity demanded for hot dogs D. a decrease in the demand for hot dogs E. no change in the quantity demanded for hot dogs
Potential GDP would increase if
A. the rate of capital depreciation increased. B. the labor force decreased. C. the price level grew. D. the rate of capital growth increased.
A decrease in aggregate demand is likely to result from:
A. an appreciation in the value of the U.S. dollar. B. a decrease in the price level. C. a decrease in the excess capacity of factories. D. an increase in the price level.