Author Question: When an economy is operating on its production possibilities curve, more production of one good ... (Read 94 times)

rosent76 · **on:** Jun 30, 2018

When an economy is operating on its production possibilities curve, more production of one good means less production of another because:
a. resources are limited.
b. resources are not perfectly adaptable to alternative uses.
c. wants are limited.
d. wants are unlimited.
e. some resources are not employed.

Question 2

When a person possesses a comparative advantage in the production of one good or service, it:
a. means that the person's opportunity cost of producing that good or service is higher than for that of other goods.
b. discourages specialization.
c. promotes greater self-sufficiency.
d. permits gains from trade to be realized due to a more efficient use of resources.