If an economy keeps increasing its capital stock, then over time its production possibilities curve will:
a. not move.
b. shift to the left.
c. shift to the right.
d. disappear because scarcity ceases to exist.
e. demonstrate massive job loss for workers.
c
You might also like to view...
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point A to Point E, the opportunity cost of motorcycles, measured in terms of hybrid cars
A. remains constant. B. decreases. C. initially increases, then decreases. D. increases.
Two problems that arise from asymmetric information are:
A. adverse selection and diseconomies of scale. B. moral hazard and the free-rider problem. C. the free-rider problem and adverse selection. D. moral hazard and adverse selection.
In the above table, there are no taxes and no imports or exports. The equilibrium level of expenditure for this economy is
A) any level because investment always equals government expenditures. B) no level because consumption expenditure is always less than real GDP. C) $3,000. D) $5,000.
When transportation costs fall, consumer prices have a tendency to rise
Indicate whether the statement is true or false