A Production Possibility Graph Slopes Down Because Of

question 48

Multiple Choice

A production possibility graph slopes down because of:

• A)the law of increasing costs.
• B)non-homogeneous resources.
• C)inefficiency.
• D)an improper output mix.
• E)unemployment.

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Definitions:

Assembly Line

A manufacturing process in which parts are added to a product in a sequential manner to create a finished product more efficiently.

Dispatch

The sending off of a message, parcel, or shipment with speed and efficiency.

Diminishing Marginal Returns

A principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, starts to decrease.

Per-worker Production Functions

The relationship between the amount of output produced per worker and the amount of inputs used per worker.