The Production Possibilities Curve for Capital and Consumer Goods Is

question 17

Multiple Choice

The production possibilities curve for capital and consumer goods is concave to the origin because _____

• A) of decreasing opportunity costs of production.
• B) resources are not perfectly adaptable to the production of both goods.
• C) consumer goods and capital goods equally contribute to economic growth.
• D) the level of technology along the frontier is assumed to vary.
• E) of constant returns to scale.

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Definitions:

Trillion

A numerical value represented as 1,000,000,000,000 or 10^12, commonly used to quantify large sums, such as government budgets and the global economy.

APC

The Average Propensity to Consume calculates the portion of income that families allocate towards consumption as opposed to savings.

United States

A country located in North America, known for its large economy and diverse population, consisting of 50 states and a federal district.

United States

A country located primarily in North America, consisting of 50 states and a federal district, known for its large economy and diverse population.