If an Economy Has to Sacrifice Increasing Amounts of Good

question 139

Multiple Choice

If an economy has to sacrifice increasing amounts of good X for each additional unit of good Y produced, then its production possibilities curve is:

• A) bowed out from the origin.
• B) bowed in toward the origin.
• C) a straight line.
• D) a vertical line.

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Definitions:

Productivity of Labor

The measurement of the amount of goods and services produced per hour of labor.

Technological Improvement

Innovations and advancements in technology that enhance productivity, efficiency, or the quality of goods and services.

Wage Increase

An upward adjustment in the amount of money paid to an employee for their labor.

Workers' Union

An organization that represents the collective interests of employees, negotiating wages, work hours, and working conditions with employers.