A bowed production possibilities curve is consistent with
A) a decreasing opportunity cost.
B) a technologically inefficient society.
C) the overutilization of productive resources.
D) highly specialized resources.
Answer: D
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In graphical form,the effect of imposing a tax on a good is shown as
A) a leftward shift of the market supply curve. B) a rightward shift of the market supply curve. C) a downward movement along the market supply curve. D) no change to the market supply curve.
According to the classical theory, an inward shift in aggregate demand would reduce
A) real Gross Domestic Product (GDP) and the price level. B) the price level but have no effect on real Gross Domestic Product (GDP). C) real income but have no impact on the price Gross Domestic Product (GDP). D) the price level but increase real Gross Domestic Product (GDP).
What would you expect the cross price elasticity of iPods and online music downloads? Explain your answer
What will be an ideal response?
Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Country A has the comparative advantage in:
A. cars and Country B has the comparative advantage in trucks.
B. trucks and Country B has the comparative advantage in cars.
C. cars and trucks.
D. neither cars nor trucks.