Which of the Following Is True of the Production Possibilities

question 14

Multiple Choice

Which of the following is true of the production possibilities curve of an economy?

• A)Along the curve, the economy produces at its potential output.
• B)An increase in the stock of capital in the economy results in a downward movement along the curve.
• C)An improvement in the productive skills of labor results in an upward movement along the curve.
• D)A decrease in the availability of land due to a natural calamity results in a downward movement along the curve.
• E)An increase in the quantity supplied of consumption goods shifts the production possibilities curve outward.

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Definitions:

Sociologists Define

An approach taken by sociologists to provide explanations or meanings to societal phenomena.

Core Nations

Countries that dominate the global economy and international trade, possessing advanced technological infrastructures and high levels of productivity.

Semiperipheral Nations

Countries in the world-system that are intermediate, neither fully developed nor least developed, often marked by moderate levels of industrialization and average per capita incomes.

Peripheral Nations

Countries that are less economically developed and often depend on core nations for capital and are exploited for labor and raw materials.