Which of the Following Statements Is True

question 37

Multiple Choice

Which of the following statements is true?

• A)Increases in a country's endowments of land, labor, and capital will lead to long-run economic growth.
• B)Improvements in the technology used in production can lead to increases in current output levels, but will not affect long-run economic growth.
• C)Improvements in production technology do not affect the shape or position of the production-possibility curve.
• D)Biased growth leads to a proportionate shift in the production-possibility curve.

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Definitions:

Labor Market

A marketplace where employers find workers and workers find jobs; the interaction determines wages, employment levels, and working conditions.

Inductive Reasoning

A method of reasoning in which specific observations or measurements are used to make general conclusions.

Normative Economics

A branch of economics that expresses value judgments about economic fairness or what the outcome of the economy or goals of public policy should be.

Economic Reasoning

The process of making decisions based on costs, benefits, and incentives in an effort to maximize benefits while minimizing costs.