Author Question: Compare two economies A and B that start out with identical production possibilities curves. Economy ... (Read 41 times)

geodog55

  • Hero Member
  • *****
  • Posts: 530
Compare two economies A and B that start out with identical production possibilities curves. Economy A chooses an efficient point with 6 consumption goods and 3 capital goods, while economy B also chooses an efficient point, but with 4 consumption goods and 5 capital goods. In the future we can predict:
 a. economy A will operate inefficiently.
  b. economy B will operate inefficiently.
  c. economy A and economy B will grow equally fast.
  d. economy A will grow faster than economy B.
  e. economy B will grow faster than economy A.

Question 2

If an economy keeps increasing its capital stock, then over time its production possibilities curve will:
 a. not move.
  b. shift to the left.
  c. shift to the right.
  d. disappear because scarcity ceases to exist.
  e. demonstrate massive job loss for workers.



sailorcrescent

  • Sr. Member
  • ****
  • Posts: 334
Answer to Question 1

e

Answer to Question 2

c



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

Individuals are never “cured” of addictions. Instead, they learn how to manage their disease to lead healthy, balanced lives.

Did you know?

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

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

Complications of influenza include: bacterial pneumonia, ear and sinus infections, dehydration, and worsening of chronic conditions such as asthma, congestive heart failure, or diabetes.

For a complete list of videos, visit our video library