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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Proponents of the monetary growth rule believe that a constant growth rate in the money supply will lead to less uncertainty and greater credibility than with activist policies
a. True b. False Indicate whether the statement is true or false
When economists say the quantity demanded of a product has decreased, they mean the
a. demand curve has shifted to the left. b. demand curve has shifted to the right. c. price of the product has fallen, and consequently, consumers are buying more of it. d. price of the product has risen, and consequently, consumers are buying less of it.