-Assume That Our National Economy Is Operating at a Point

question 108

Multiple Choice

-Assume that our national economy is operating at a point on its bowed-out production possibilities curve. According to the production possibilities schedule in Table 1.4, if our nation produces more consumer goods (good A) , then

• A) it must sacrifice larger and larger amounts of investment goods (good B) to do so.
• B) the value of investment goods that must be forgone decreases.
• C) the resources transferred will be increasingly efficient in producing those consumer goods.
• D) it must have a comparative advantage in the production of consumer goods (good A).
• E) we will experience a greater rate of economic growth.

---

Definitions:

Self-serving Bias

The common tendency to attribute successes to personal characteristics and failures to external factors.

Situational Factors

External influences or conditions that affect decision-making, behavior, or performance in varying scenarios.

External-unstable Factor

refers to outside influences that can affect behavior or outcomes but are inconsistent and unpredictable, such as luck or chance.

Pessimistic Explanatory

A cognitive style where individuals habitually attribute negative events to stable, global, and internal causes.