When an economy experiences significant economic growth:
a. a negative relationship exists between output per capita and adult literacy rates.
b. an indirect relationship exists between output per capita and adult literacy rates.
c. a direct relationship exists between output per capita and adult literacy rates.
d. no observed relationship exists between output per capita and adult literacy rates.
Question 2
Consider a nation with an endowment of iron ore and petroleum. If the nation specializes in the production of aluminum and gasoline instead of steel we can say that it is operating:
a. on its production possibilities curve.
b. outside its production possibilities curve.
c. inside its production possibilities curve.
d. on the highest achievable production possibilities curve.
e. on the lowest production possibilities curve.
This chart illustrates the four quadrants in which we can place the relationships between the state
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