The production possibilities curve represents the fact that:
A) the economy will automatically end up at full employment.
B) an economy's productive capacity increases proportionally with its population.
C) if all resources of an economy are being used efficiently, more of one good can be produced only if less of another good is produced.
D) economic production possibilities have no limit.
Ans: C) if all resources of an economy are being used efficiently, more of one good can be produced only if less of another good is produced.
You might also like to view...
How does a bank make most of its profit on its business?
(A) By paying out less in interest on deposits than it earns in interest on loans. (B) By receiving fees from the government for handling federal and state accounts. (C) By collecting fees on safety deposit boxes, travelers' checks, and certified checks. (D) By collecting fees on credit card purchases.
In order to be able to consume more in the future, you have to consume
A) less today and save the difference. B) more today to increase supply. C) more consumer goods. D) fewer capital goods.