A typical concave (bowed out from the origin) production possibilities curve implies:
A. that economic resources are unlimited.
B. that society must choose among various attainable combinations of goods.
C. decreasing opportunity costs.
D. that society is using a market system to allocate resources.
Answer: B
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The table above shows the labor demand and labor supply schedules for a nation. The equilibrium real wage rate is ________ and the equilibrium quantity of labor is ________ billions of hours per year
A) $25; 260 B) $20; 280 C) $20; 260 D) $15; 260 E) $40; 320
Does the production function in the table above exhibit diminishing returns? Explain
What will be an ideal response?
When future labor income rises in a large open economy, it causes the current account to ________ and investment to ________
A) fall; rise B) rise; remain unchanged C) fall; fall D) rise; rise
An individual deciding how to allocate her limited time is dealing with both scarcity and trade-offs
a. True b. False Indicate whether the statement is true or false