The production possibilities curve represents
A) the total amount of stocks and bonds that exist in the economy.
B) the trade-off between human capital and physical capital that exists.
C) all possible combinations of total output that can be produced.
D) society's needs.
C
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Refer to Figure 15-1. Which of the following statements about the firm depicted in the diagram is true?
A) The fact that this firm is a natural monopoly is shown by the long-run average total cost curve still falling when it crosses the demand curve. B) The fact that this firm is a natural monopoly is shown by the continually declining market demand curve as output rises. C) The fact that this firm is a natural monopoly is shown by the fact that marginal cost lies below the long-run average total cost where the firm maximizes its profits. D) The fact that this firm is a natural monopoly is shown by the continually declining marginal revenue curve as output rises.
Which of the following is not a form of crowding out?
a. Lower household spending due to higher interest rates b. Lower business spending due to higher interest rates c. Lower net exports due to higher interest rates d. Lower private spending due to higher taxes e. Greater output and employment in the short run