Which of the following statements is true?
A. Improvements in production technology do not affect the shape or position of the production-possibility curve.
B. Biased growth leads to a proportionate shift in the production-possibility curve.
C. Increases in a country's endowments of land, labor, and capital will lead to long-run economic growth.
D. Improvements in the technology used in production can lead to increases in current output levels but are not a source of long-run economic growth.
Answer: C
You might also like to view...
What are four functions of financial instruments?
What will be an ideal response?
Just after a cyclical trough, given the excess capacity in the economy, there should be an unusually ________ rate of closing the gap between desired and actual capital stocks, making net investment respond relatively ________ to rising sales
A) high, strongly B) high, weakly C) low, strongly D) low, weakly
Since the early 1960s, the percentage of Americans who are obese;
a. has decreases due to the increased emphasis on physical fitness b. has decreased due to the increased emphasis of healthy diets c. has increased by more than double d. both a. and b.
Less-developed countries are poor for all of the following reasons except one. Which one?
A. The labor force is too small. B. Labor productivity is low. C. Investment funds tend to flow abroad D. Investment in human capital is very low.