An outward bowed production possibilities curve illustrates
A) inefficient production.
B) the law of increasing additional cost.
C) a lack of scarcity.
D) zero opportunity cost of moving from inefficient production to currently unobtainable production.
B
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In the monetary small open-economy model with a flexible exchange rate, an increase in the domestic price level has which impact on domestic money demand?
A) It increases it. B) It decreases it. C) It has no impact. D) It depends.
When drawing a production possibilities frontier, all of the following are usually assumed except one. Which is the exception?
a. The quantity of resources is rapidly growing. b. Technology is fixed. c. Resources can be shifted between production of the two goods. d. The production possibilities frontier is drawn for a particular time period. e. Resources are fully and efficiently employed.