An Analysis of Production Possibilities Curves Indicates That the Reason

question 45

Multiple Choice

An analysis of production possibilities curves indicates that the reason why underdeveloped nations have difficulties increasing their economic growth rates is because:

• A) low population growth rates mean fewer workers to produce food and other necessities.
• B) their production possibilities curves shift in when resources are increased.
• C) the opportunity cost of shifting resources from consumption goods to capital goods is relatively low.
• D) they must cut back their already meager consumption levels to increase capital production.

---

Definitions:

Increase Efficiency

The process of improving the effectiveness of an operation, system, or process by maximizing output with the minimal amount of input or effort.

Super Bowl

The annual championship game of the National Football League (NFL) in the United States, known for its significant viewership and elaborate halftime shows.

Ticket Prices

The cost required to purchase a ticket for entry to an event, such as a movie, concert, or sporting event.

Transaction Costs

The costs to individuals of making a deal.