What are the factors that can cause a shift in the production possibilities curve?
Advancement in technology, improvements in labor productivity, or new sources of natural resources could lead to outward shifts of the production possibilities curve.
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All natural monopolies are characterized by
a. decreasing marginal cost at the point where their marginal cost curve crosses their demand curve. b. the fact that they earn economic losses. c. decreasing average costs at the point where their average cost curve crosses their demand curve. d. the fact that losses can only be avoided if they are regulated.
The debate over how the government should respond to deep economic downturns may be easier to overcome if we focus on infrastructure spending because:
A. we have resolve the debate over infrastructure spending before we do anything else. B. there's broad agreement that the government should increase infrastructure spending. C. insufficient infrastructure spending is the root cause of most economic downturns. D. there's broad agreement that the government should decrease infrastructure spending.
How have government inefficiencies contributed to the creation of dead capital in the world's developing nations?
What will be an ideal response?
A vertical demand curve has
A. infinite elasticity. B. zero elasticity. C. negative elasticity. D. positive elasticity.