Author Question: An economy's production possibility curve will be a straight line if: a. resources are not equally ... (Read 59 times)

chads108 · **on:** Jun 30, 2018

An economy's production possibility curve will be a straight line if:
a. resources are not equally substitutable among productive tasks.
b. the economy experiences significant unemployment.
c. the opportunity cost of production of a good decreases as more of it is produced.
d. the opportunity cost of production of a good is constant as more of it is produced.

Question 2

Sticky wages and input prices can explain why profits change along a short run aggregate supply curve.
a. True
b. False
Indicate whether the statement is true or false