Author Question: The bowed-outward shape of a PPF A) is due to capital accumulation. B) reflects the unequal ... (Read 63 times)

ARLKQ · **on:** Jun 29, 2018

The bowed-outward shape of a PPF

A) is due to capital accumulation.
B) reflects the unequal application of technology in production.
C) illustrates the fact that no opportunity cost is incurred for increasing the production of the good measured on the horizontal axis but it is incurred to increase production of the good measured along the vertical axis.
D) is due to the existence of increasing opportunity cost.

Question 2

An increase in nominal GDP could result from an increase in

i. production.
ii. prices.
iii. subsidies.
A) i only
B) ii only
C) i and ii
D) i and iii
E) i, ii, and iii