The Fact That Individual Productive Resources Are NOT Equally Useful

question 184

Multiple Choice

The fact that individual productive resources are NOT equally useful in all activities

• A) implies a linear production possibilities frontier.
• B) follows from the law of demand.
• C) implies that a production possibilities frontier will be bowed outward.
• D) implies that gain from specialization and trade is unlikely.

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues, indicating the company's profitability.

Sales Increase

A rise in the amount of goods or services sold by a company, indicating a growth in revenue.

Additional Debt

New borrowing taken on by a company or individual, in addition to any existing debt.

Maximum Capacity

The highest level of output that a company can sustain to make a product or provide a service.