Which of the following ideas is illustrated by the production possibilities curve [PPC]?
a. There are no limits on the total production feasible in an economy.
b. An economy need not decrease the production of one commodity to increase the production of another.
c. It is possible to satisfy unlimited wants in an economy through proper investment in research and development.
d. When an economy chooses to produce a combination of goods and services, other combinations of goods and services are sacrificed.
e. An economy can specialize in the production of only one good.
d
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In a multi-product firm, cannibalization is
a. An increase in the quality of both the brand's products b. A decrease in the quality of both the brands products c. An increase in both the brand's sales d. An increase in one of the brand's sales due to the decrease in sales of the other.
A monopolist's demand curve
a. is horizontal at the market price b. lies above its marginal revenue curve c. is the same as its marginal cost curve d. indicates that the firm must raise price to sell additional units e. lies above the marginal cost curve at all levels of output