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Which of the following is true if the production possibilities curve is a curved line concave to the origin?
A. Resources are perfectly substitutable between the production of the two goods
B. It is possible to produce more of both products.
C. Both products are equally capable of satisfying consumer wants
D. The prices of the two products are the same.
E. As more of one good is produced, more and more of the other good must be given up.
A. Resources are perfectly substitutable between the production of the two goods
B. It is possible to produce more of both products.
C. Both products are equally capable of satisfying consumer wants
D. The prices of the two products are the same.
E. As more of one good is produced, more and more of the other good must be given up.
Which of the following is true of the concept of increasing opportunity cost?
A. it is unimportant in command economics because of central planning.
(B) It suggests that the use of resources to produce a set of goods and services means that
as more of one is produced, some of the other must be sacrificed.
C. It is irrelevant if the production possibilities curve is convex to the origin.
D. It suggests that unlimited wants can be fulfilled.
E. It means that resources are plentiful and opportunities to produce greater amounts of goods and services are unlimited.
A. it is unimportant in command economics because of central planning.
(B) It suggests that the use of resources to produce a set of goods and services means that
as more of one is produced, some of the other must be sacrificed.
C. It is irrelevant if the production possibilities curve is convex to the origin.
D. It suggests that unlimited wants can be fulfilled.
E. It means that resources are plentiful and opportunities to produce greater amounts of goods and services are unlimited.