When the production possibilities curve is bowed out, resources are:
A. equally well-suited to production of both goods.
B. not being used efficiently.
C. not equally suited to the production of both types of goods.
D. increasing as more of one good is produced.
Answer: C
Economics
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Assume a closed economy, that taxes are fixed, and the marginal propensity to consume is equal to 0.8. What is the government spending multiplier?
A) 10 B) 5 C) 4 D) 3
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Which of the following is (are) correct? In the classical system, the suppliers of bonds were the
a. government which always sold bonds to finance a new project. b. firms which financed all investment expenditures by selling bonds. c. government which might sell bonds to finance spending in excess of tax revenues. d. Both b and c.
Economics