In the figure below, we see an expansion of the production-possibility curve (from PPC1 to PPC2). The two goods produced are wheat and cloth, which are land-intensive and labor-intensive, respectively. The outward shift of the production-possibility curve shows

A. biased growth.
B. a move from a no-trade situation to free trade.
C. an increase in the production costs of both goods.
D. balanced growth.


Answer: A

Economics

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The above figure shows the Lorenz curve for wealth for the nation of Rusha. What percent of wealth is owned by the poorest quintile?

A) 0 percent B) 5 percent C) 20 percent D) 35 percent

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At the profit-maximizing level of output, demand is

A) completely inelastic. B) inelastic, but not completely inelastic. C) unit elastic. D) elastic, but not infinitely elastic. E) infinitely elastic.

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In the GDP accounts production equals

a. income. b. income + saving. c. income - government expenditures. d. income - imports.

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The expansion path sloping __________ means as the firm expands each input is used more and more.

Fill in the blank(s) with the appropriate word(s).

Economics