One reason you go to college is to improve your employment opportunities and obtain a higher income in the future. In the context of production possibilities, this is most comparable to:
A) producing at any point on the production possibilities curve.
B) producing at a point inside the production possibilities curve.
C) producing relatively more consumer goods and relatively fewer capital goods.
D) producing relatively more capital goods and relatively fewer consumer goods.
Ans: D) producing relatively more capital goods and relatively fewer consumer goods.
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The aggregate production function
A) measures the productivity of labor as leisure decreases. B) increases only with increases in productivity. C) shows that real GDP can increase because of increased productivity as well as increased labor hours. D) cannot show the impacts of productivity improvements.
In the four-quadrant diagram of the specific factors model, the graph in the lower right quadrant is a country's
A) production function for cloth. B) production possibility frontier. C) labor allocation constraint. D) production function for food. E) labor supply curve.