Refer to the above graph. If the production possibilities curve of an economy shifts from AB to CD, it is most likely caused by:
A. technological progress.
B. full employment of resources.
C. a decrease in the price level.
D. allocative efficiency.
Answer: A
You might also like to view...
Money is neutral in the model economy we discussed because
A) the money supply is exogenous. B) the money supply is intertemporal. C) prices are fully flexible. D) it is a barter economy.
Which of the following best represents economic growth?
A) an increase in nominal GDP B) an increase in real GDP C) an increase in the per capita nominal GDP D) an increase in the per capita real GDP
If a firm's MRP of capital > MFC, the firm should
a. lower the interest rate b. decrease its quantity demanded of loanable funds c. increase its quantity demanded of loanable funds d. hire more labor e. raise the interest rate
Rock Crushers Limited produces smaller rocks from larger rocks. As part of the production process, Rock Crusher Limited takes the below listed actions. Which is a capital investment?
A. Covering the payroll for their rock crushing technicians. B. Purchasing large rocks and crushing them into smaller rocks. C. Storing suitably crushed rock for future sales. D. Making interest payments on their bonds.