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
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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
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.
In the GDP accounts production equals
a. income. b. income + saving. c. income - government expenditures. d. income - imports.
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).