In the long run, if the production of all goods increases for a society (there is economic growth), it will cause the production possibility frontier to
A. shift inward.
B. stay the same.
C. shift outward.
D. first shift inward and then shift outward.
Answer: C
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In the above figure, below what minimum price will a perfectly competitive firm shut down rather than produce?
A) for any price less than $16 per unit B) for any price less than $12 per unit C) for any price less than $8 per unit D) for any price less than $4 per unit
Costs to the firm arising from reaching agreements on input prices with suppliers and then ensuring that terms of agreements are fulfilled, are called
A) negotiation costs. B) agency costs. C) transactions costs. D) implicit costs.
By taking the short position on a futures contract of $100,000 at a price of 115 you are agreeing to ________ a ________ face value security for ________
A) sell; $100,000; $115,000. B) sell; $115,000; $100,000. C) buy; $100,000; $115,000. D) buy; $115,000; $100,000.
Explain briefly what will likely happen to society if it chooses to produce more capital goods and fewer consumption goods
What will be an ideal response?