Author Question: People in poor countries may have difficulties achieving economic growth because: a. their ... (Read 61 times)

chads108 · **on:** Jun 30, 2018

People in poor countries may have difficulties achieving economic growth because:
a. their production possibilities curves slope upward instead of downward.
b. they must cut back on current consumption to increase capital goods.
c. they have a solid consumption base already in place.
d. their resource bases are fully developed.
e. the law of increasing costs makes it hard to produce more goods.

Question 2

An analysis of production possibilities curves indicates that the reason why underdeveloped nations have difficulties increasing their economic growth rates is because:
a. low population growth rates mean fewer workers to produce food and other necessities.
b. their production possibilities curves shift in when resources are increased.
c. their production possibilities curves are positively sloped, unlike those in more developed economies.
d. they must cut back their already meager consumption levels to increase capital production.
e. the opportunity cost of shifting resources from consumption goods to capital goods is relatively low.