This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: An increase in production of one good will have zero opportunity cost only if the economy initially ... (Read 39 times)

bobbysung

  • Hero Member
  • *****
  • Posts: 519
on: Jun 30, 2018
An increase in production of one good will have zero opportunity cost only if the economy initially existed at a point inside the production possibilities curve.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

What is the relationship between savings, capital formation, and consumption?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Bigfoot1984

  • Sr. Member
  • ****
  • Posts: 321
Reply #1 on: Jun 30, 2018
Answer to Question 1

True

Answer to Question 2

One of the most important determinants of economic growth is the savings rate. If individuals wish to consume more in the future, they must consume less than their total income today. The savings from individuals become available to businesses that in turn use it for investment purposes in plant, equipment, and the expansion or start-up of businesses and such investment will increase future consumption possibilities.


bobbysung

  • Hero Member
  • *****
  • Posts: 519
Reply #2 on: Jun 30, 2018
Correct answers!


Bigfoot1984

  • Sr. Member
  • ****
  • Posts: 321
Reply #3 on: Jun 30, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

Medication errors are three times higher among children and infants than with adults.

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

Did you know?

The top 10 most important tips that will help you grow old gracefully include (1) quit smoking, (2) keep your weight down, (3) take supplements, (4) skip a meal each day or fast 1 day per week, (5) get a pet, (6) get medical help for chronic pain, (7) walk regularly, (8) reduce arguments, (9) put live plants in your living space, and (10) do some weight training.

Did you know?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

For millions of people, the United States represents a land of opportunity and freedom from ... For millions of people, the United States represents a land of opportunity and freedom from ...
Major U.S. Centers of Cattle, Corn, Wheat, and Soybean Production Major U.S. Centers of Cattle, Corn, Wheat, and Soybean Production
The Production of Cytotoxic T-lymphocytes (CTLs) The Production of Cytotoxic T-lymphocytes (CTLs)
Increase in total spending in presidential campaigns, 1976-2020 Increase in total spending in presidential campaigns, 1976-2020
Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price. Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price.
Production of colorless sectors and reversion of the unstable colorless Production of colorless sectors and reversion of the unstable colorless
Video: Causes of Angina

For a complete list of videos, visit our video library