Increases in resources or improvements in technology will tend to cause a society's production possibilities curve to:
A. become vertical.
B. shift inward or to the left.
C. shift outward or to the right.
D. become horizontal.
Answer: C
You might also like to view...
The following question is an example of microeconomic analysis, "What determines the price of gasoline in a particular city or town?"
Indicate whether the statement is true or false
Equilibrium market prices for capital and labor are $10 and $8, respectively. Then, the economy experiences one or more supply shocks, so that the marginal product of capital is $9, and the marginal product of labor is $6
Assuming that the available quantities of capital and labor are fixed, which of the following is (are) likely to decrease as the economy approaches its new equilibrium? A) economic profits B) real rental price of capital C) total output D) the quantity of capital in use E) none of the above
If we are comparing the price of regular gasoline with the price of super gasoline, then an increase in the relative price of regular gasoline implies that
A) the nominal price of regular gasoline increased. B) the nominal price of super gasoline decreased. C) the relative price of super gasoline decreased. D) the relative price of regular gasoline increased.
What would it take to overcome scarcity?
a. spending more money b. making better decisions c. having unlimited resources d. eliminating price controls