Which of the following can be stated as potentially true about any economy?
a. Its future location on its production possibilities frontier has no bearing on its current decisions.
b. Increased supplies of the factors of production will only affect its current location on its production possibilities frontier.
c. Increased supplies of the factors of production will cause its future location to expand inward.
d. Its current choice of positions on its production possibilities frontier helps determine its future location.
Answer: d. Its current choice of positions on its production possibilities frontier helps determine its future location.
You might also like to view...
You run a construction firm with unique capabilities. An architecture firm you have worked for in the past is working on a proposal for a new building that could earn them huge profits. They are considering one of two unique design concepts that either
exploit your capabilities or those of another contractor with a different set of capabilities. They contact you to determine if you could actually get the job done and to get a quote to be included in their bid. The client makes a few changes that will have a small impact on your operations but awards the contract to the architect's plan that includes you. How does the awarding of the contract with changes affect how much your final fee for your services?
American Airlines makes numerous nonstop flights from Chicago's O'Hare Airport to the airport at Dallas-Fort Worth. The distance between those two cities is 1,000 miles. The only variable cost, fuel, costs $.06 for each passenger-mile it flies. Bob, on his way to an emergency business meeting, buys a ticket in coach class for $1,300 at the very last minute. The marginal cost of flying Bob from
Chicago to Dallas-Fort worth is a. $1300 b. higher than the average cost of previous passengers c. $600 d. $160 e. $60