Exhibit 17-1 Nation of Padia
Exhibit 17-1 shows the production possibility curve of the nation of Padia. Based only on this information, the point which would produce the highest rate of growth would be:

Oil field workers' wages are directly tied to the world price of oil

a. True b. False Indicate whether the statement is true or false

The slope of the aggregate supply curve increases as output increases because

A. the cost of resource use increases as potential is reached. B. consumers are willing to pay more as output expands. C. firms substitute capital for labor as prices increase. D. firms substitute capital for labor as capacity is reached.