Which of the following is true?
A. The production possibilities curve indicates that it will be impossible to expand total output with the passage of time.
B. As long as resources are scarce, output cannot be increased.
C. The size of the economic pie is fixed, and therefore, if one individual has more income, others must have less.
D. Over time, the output of goods and services can be increased through human ingenuity and discovery of better ways of doing things.
Answer: D
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The Pareto optimality concept is _____
a. equivalent to the concept of economic efficiency b. equivalent to Pareto superiority c. equivalent to utilitarianism d. equivalent to cost-benefit analysis
If a pharmaceutical firm is researching ways to improve its heartburn medicine and discovers a technique that will improve its allergy medicine, one could conclude that economies of scope exist in that industry
Indicate whether the statement is true or false