The production possibilities curve for capital and consumer goods is concave to the origin because:
a. of decreasing opportunity costs of production
b. resources are not perfectly adaptable to the production of both goods.
c. both consumer goods and capital goods equally contribute to economic growth.
d. the level of technology along the frontier is assumed to vary.
e. of constant returns to scale.
b
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Refer to Figure 5-6. What does D2 represent?
A) the demand curve reflecting marginal social benefits B) the positive externalities curve C) the demand curve reflecting marginal private benefits D) the social welfare curve
In 1999, demonstrators representing a mix of traditional and new ideologies disrupted a major international trade meeting in Seattle of
A) the OECD. B) NAFTA. C) the WTO. D) GATT. E) the G8.
Assuming the economy is in a recession, Keynesian economists predict that: a. wages will remain fixed
b. monetary policy will sell government securities. c. higher wages will shift the short-run aggregate supply curve leftward. d. lower wages will shift the short-run aggregate supply curve rightward.
The ability of a firm to charge different customers different prices is called _____
a. price ceiling b. price discrimination c. predatory pricing d. price flooring e. base point pricing