A bowed-outward production possibilities curve demonstrates the concept of
A. increasing opportunity costs at first but the opportunity costs steadily decrease as you move down along the curve.
B. increasing opportunity costs as production shifts from the production of one good to the production of the other good.
C. constant opportunity costs as production shifts from the production of one good to the production of the other good.
D. decreasing opportunity costs as production shifts from the production of one good to the production of the other good.
Answer: B
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________ increases the quantity of real GDP supplied and is shown as a movement along the AS curve
A) An increase in potential GDP B) A decrease in the quantity of money C) A rise in the price level D) A decrease in consumption expenditure E) A fall in the expected rate of profit
Which of the following would slow down productivity growth?
a. A change in the composition of the workforce so that more middle-aged people and fewer young people are working b. A change in the composition of the workforce so that organizations hire more men who work steadily throughout the year than men who frequently enter and leave the workforce c. The quality of education remaining unchanged d. People starting to invest more in capital goods e. Firms starting to cut down the size of their labor force