In drawing a production possibilities curve, it is assumed that:
A) technology does not change.
B) the economy is fully employed and may not be efficient.
C) there are increasing qualities of the factors of production.
D) all of the above are true.
Ans: A) technology does not change.
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Suppose the price of a can was $5.14. In this case, to maximize its profit the firm illustrated in the figure above would
A) increase its production and would make an economic profit. B) not change its production and would make zero economic profit. C) not change its production and would make an economic profit. D) increase its production and would incur an economic loss. E) not change its production and would incur an economic loss.
An increase in financial innovations such as increased network of ATM machines and the widespread acceptance of debit cards
A) will shift the demand for money to the right. B) will shift the demand for money to the left. C) increases the quantity of money people want to hold at each interest rate. D) decreases the quantity of money people want to hold at each interest rate.