The production possibilities curve for two products is bowed out because
A) as the production of a good increases, opportunity cost increases.
B) as the production of a good increases, opportunity cost is unchanged.
C) the qualities of the resources are not identical.
D) there are unemployed resources.
Answer: A
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Which of these is NOT a potential benefit provided by monopolies?
a. more variety of creative works such as movies and books b. greater incentives to develop new technologies and medical cures c. increased consumer surplus as a result of a smaller scale of operations d. lower prices in industries with very large economies of scale
A productivity slowdown was observed from the
A) early 1950s to the late 1960s. B) early 1960s to the early 1970s. C) late 1960s to the early 1980s. D) mid-1980s to the late 1990s.
During a particular year, nominal wages increased by 4 percent but real wages declined by 2 percent. This implies that the price level increased by 6 percent
a. True b. False Indicate whether the statement is true or false
A "puppy boom" and an increase in the price of horse meat would cause the market price of dog food to
A. rise and the market output to rise, fall, or remain unchanged depending on the magnitude of the changes. B. fall and the market output to rise, fall, or remain unchanged depending on the magnitude of the changes. C. rise, fall, or remain unchanged depending on the magnitude of the changes, and the market output to rise. D. rise and the market output to rise .