The production possibility curve:
A. is based on the law of diminishing returns.
B. is convex to the origin.
C. is the boundary between attainable and unattainable outputs.
D. reflects the mixed economy found with most economic systems.
Answer: C
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Season ticket holders often purchase their tickets before a season begins. There is often a discount associated with season tickets. Why?
A) Buying season tickets entails risk, which consumers are willing to bear if they are compensated for doing so. B) Buying season tickets is a way of guaranteeing a supply of tickets for the secondary market. C) Selling season tickets entails greater transactions costs which team owners hope to avoid. D) Sports teams are local monopolies.
Refer to the indifference curve in Figure 3.3. Which of the following statements about marginal utility (MU) is correct?
A) MU(A) = 0. B) MU(B) = 0. C) MU(A) is negative. D) MU(B) is negative.
In 2011, the greatest number of legal immigrants arriving in the United States came from:
A. India and North Korea. B. the Dominican Republic and Cuba. C. China and Vietnam. D. Mexico and China.
As the interest rate increases, the present value of a future payment
A) increases. B) decreases. C) does not change. D) approaches infinity.