The production possibilities curve for two products is bowed out because
A. the qualities of the resources are not identical.
B. there are unemployed resources.
C. as the production of a good increases, opportunity cost is unchanged.
D. as the production of a good increases, opportunity cost increases.
Answer: D
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What will be the effects of an increase in real output on the interest rate?
What will be an ideal response?
_____ helps Congress evaluate the president's budget
a. The Treasury Department b. The Office of Management and Budget c. The Congressional Budget Office d. The Joint Economic Committee
Which one of the following will shift the consumption curve upward?
a. higher interest rates b. expectations that the economy will grow in the future c. a decrease in money holdings d. higher capacity utilization rates e. a tax cut
One implication of the theory of compensating differentials is that jobs in states with high income tax rates are likely to
A. have worse working conditions. B. be associated with more fringe benefits. C. pay the same wage and offer the same fringe benefits package as the same jobs in lower-tax states. D. be associated with fewer fringe benefits. E. be seasonal in nature.