The curved shape of the production possibilities frontier can be explained by
A. Increasing cost of production
B. Constant cost of production
c. Scarcity
d. Economic growth
Solution -
Option A. Increasing cost of production is Correct Option .
Reason -
the curvedc shaped PPF always depends upon a opportunity cost of producing and this shaped will explain using when increasing cost of prodcution so given option A is correct Option .
The curved shape of the production possibilities frontier can be explained by A. Increasing cost of...
46) A shift outwards of the nation's production possibilities frontier can occur due to: 46) A) a change in the amounts of one good desired. B) an increase in the labor force C) a natural disaster like a hurricane or bad earthquake D) a reduction in unemployment. 48) If a nation's production possibilities frontier moves outward, this represents: A) economic growth. B) an impossible situation. C) rising prices of the two goods on the production possibilities frontier model. D) a...
Why is the shape of the production possibilities frontier often curved instead of straight.
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Economic growth (shifting of the production possibilities frontier) can occur (pick all the correct answers) - by improving the level of technology and skills in th economy - by increasing prices in the economy - by using resources efficiently - increasing the amount of resources (ex labor) in the economy
1. What are the effects of increasing opportunity cost on the shape of economy's production possibilities frontier and what is the source of increasing opportunity costs 2. An automobile dealership makes the mistake of setting a price above the market equilibrium price foe its product.What action should this dealership take and why should it take that action?
Figure 1: PPF Production Possibilities Frontier 0 0 Pizza Multiple Choice 1. Refer to the Production Possibilities Frontier (PPF) in Figure 1 on the next page. What is true about point A? (A) It is unattainable (B) Resources are being unused or misallocated (C) Capital exceeds labour in production (D) It is preferable to point B 2. Still referring to Figure 1, what is true about point B? (A) It represents diminishing and increasing opportunity cost (B) It is a...
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