The production possibilities curve in Figure 2.1 illustrates the notion of

A) opportunity cost. B) increased factory goods production.
C) diminishing resources. D) increased farm produce production.

A

Economics

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How does the marginal benefit from a good change as the quantity produced of that good increases?

What will be an ideal response?

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If the income effect of a wage increase equals the substitution effect, the labor supply curve is horizontal at the equilibrium wage

Indicate whether the statement is true or false

Economics