A bowed outward production possibilities frontier occurs when
A) opportunity costs are constant.
B) resources are not scarce.
C) as more of a good is produced, producing additional units of it require greater reductions in the other good.
D) the society is operating on the production possibilities frontier.
C
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Economists have developed models of risk aversion using the concept of
a. utility and the associated assumption of diminishing marginal utility. b. utility and the associated assumption of increasing marginal utility. c. income and the associated assumption of diminishing marginal wealth. d. income and the associated assumption of increasing marginal wealth.
Which of the following contributes to the high productivity of American workers?
A. The labor-intensive production process in the United States. B. The decreasing investment in human capital. C. The low level of factor mobility. D. The abundance of capital relative to labor.