Destruction of significant infrastructure will result in a country's production possibilities frontier:
a. becoming steeper.
b. becoming flatter
c. shifting inward.
d. shifting outward.
c
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In one-input models, all technologically efficient production plans are economically efficient and vice versa.
Answer the following statement true (T) or false (F)
In agriculture during much of the 20th century, supply grew more than demand. Which two farm problems are these?
A) the high-productivity problem and the income elasticity problem B) the low-productivity problem and the income inelasticity problem C) the high-productivity problem and the income inelasticity problem D) the low-productivity problem and the income elasticity problem E) none of the above
Suppose a firm is a natural monopoly. Then, until the long-run average cost curve crosses the demand curve, as the quantity increases the long-run average costs
A) increase. B) decrease. C) decrease and then increase. D) increase and then decrease.
For heavily traded assets like stocks and bonds, arbitrage:
A. will equalize rates of return across all stocks and bonds. B. will drive up rates of return on all assets. C. is a lengthy process because of the large volume of transactions. D. will often equalize rates of return among similar assets within minutes.