A straight-line production possibilities curve takes this shape because
A) the opportunity cost of producing a good is constant.
B) the opportunity cost of producing more of a good is decreasing.
C) resources are better suited for producing one output than another.
D) resources are fixed.
A
Economics
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Some automobile owners will drive faster knowing that they are covered by health and automobile insurance. This behavior creates the problem of
A) fraudulent claims. B) moral hazard. C) adverse selection. D) pecuniary purchases.
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A relatively flat aggregate demand curve indicates that
A) velocity is relatively constant. B) the economy is near full employment. C) inflation is relatively low. D) spending is sensitive to changes in the price level.
Economics