What causes the production possibility curve to be bowed out?
What will be an ideal response?
A bowed production possibility curve indicates increasing opportunity costs. To produce more of one good, resources must be taken away from producing another good. These resources often are specialized. This implies that the resources cannot move easily from producing one good to another. The more of a good that is produced, the more it must use resources that are better suited for the other good, and the extra costs of producing another unit of the good increase.
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Regression analysis splits people into groups, with each group containing identical people who
A) have different qualifications. B) do different work. C) are all of the same gender. D) None of the above are correct.
If Mario's Pizza offers consumers who purchase one medium sized pizza a second pizza at half price, this is an example of ________.
A) third-degree price discrimination B) second-degree price discrimination C) first-degree price discrimination D) zero-degree price discrimination
The short run is a period of time:
A. in which a firm uses at least one fixed input. B. that is long enough to permit changes in the firm's plant size. C. in which production occurs within one year. D. in which production occurs within six months.
From 1995 to 2001, the U.S. public debt relative to GDP:
A. Increased, and fell since then B. Decreased, and increased since then C. Increased steadily and continued to increase since then D. Was roughly constant, but has increased since