In the Two­sector (Manufacturing and Agriculture)

question 36

Multiple Choice

In the two­sector (manufacturing and agriculture)
Specific­factors model, diminishing returns to labor
Implies:

• A)that the country's production possibilities frontier is linear (a straight line).
• B)that the country's production possibilities frontier is concave to the origin (bowed out from the origin).
• C)that the country's production possibilities frontier is convex from the origin (bowed in toward the origin).
• D)that the country's production possibilities frontier may be either concave to or convex from the origin.

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Definitions:

Demand Function

A mathematical expression that shows the relationship between the quantity of a good or service that consumers are willing and able to purchase at various prices.

Tickets

Documents or electronic codes that grant the holder the right to admission to an event, transport service, or other specific activities.

Price Elasticity

Evaluates the responsiveness of product demand to variations in its market price.

Demand Function

A mathematical representation showing the quantity of a good or service consumers are willing and able to purchase at different prices.