If a country's production possibilities curve gets more bowed out over time, it is an indication that
A) technological change has taken place.
B) society is learning to use its resources more efficiently.
C) the quantity of labor and capital have increased.
D) resources have become more highly specialized.
Answer: D
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David sells Sno-cones and uses the money earned to buy pizzas. Last year Sno-cones sold for $1 each, and pizzas were $10 each. This year David finds that he can only charge $0.50 per Sno-cone, but that the price of a pizza has climbed to $12. a . If
David asks the government to intervene to maintain his purchasing power, what price would the government have to set for Sno-cones? Explain. b. How would the new, government-imposed Sno-cone price affect the Sno-cone market?
_________ is where it is cheaper for separate products to be produced independently than for one firm to produce the same products jointly.
Fill in the blank(s) with the appropriate word(s).
Opportunity cost is defined as the value or benefit of the
A. equilibrium price. B. next best alternative. C. most valuable item. D. least valuable item.
Using the specific factors model, assume that strawberry production requires the specific factor of land, tractor production requires the specific factor of capital, and labor is variable. If the United States is capital abundant compared to Mexico, and Mexico is land abundant compared to the United States, then in the short run with trade, which of the following is true?
A) Mexican wages will rise more than the increase in the price of tractors in Mexico. B) U.S. wages will rise less than the fall in the price of tractors in the United States. C) The owners of capital in the United States will see a larger increase in their incomes in percentage terms than the increase in the price of tractors. D) The owners of land in Mexico will see a smaller increase in their incomes in percentage terms than the increase in the price of strawberries.