This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: An increase in production of one good will have zero opportunity cost only if the economy initially ... (Read 38 times)

bobbysung

  • Hero Member
  • *****
  • Posts: 519
on: Jun 30, 2018
An increase in production of one good will have zero opportunity cost only if the economy initially existed at a point inside the production possibilities curve.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

What is the relationship between savings, capital formation, and consumption?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Bigfoot1984

  • Sr. Member
  • ****
  • Posts: 321
Reply #1 on: Jun 30, 2018
Answer to Question 1

True

Answer to Question 2

One of the most important determinants of economic growth is the savings rate. If individuals wish to consume more in the future, they must consume less than their total income today. The savings from individuals become available to businesses that in turn use it for investment purposes in plant, equipment, and the expansion or start-up of businesses and such investment will increase future consumption possibilities.


bobbysung

  • Hero Member
  • *****
  • Posts: 519
Reply #2 on: Jun 30, 2018
Correct answers!


Bigfoot1984

  • Sr. Member
  • ****
  • Posts: 321
Reply #3 on: Jun 30, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Did you know?

To maintain good kidney function, you should drink at least 3 quarts of water daily. Water dilutes urine and helps prevent concentrations of salts and minerals that can lead to kidney stone formation. Chronic dehydration is a major contributor to the development of kidney stones.

Did you know?

There are more sensory neurons in the tongue than in any other part of the body.

Did you know?

Cucumber slices relieve headaches by tightening blood vessels, reducing blood flow to the area, and relieving pressure.

Cellular mechanisms that increase protein diversity Cellular mechanisms that increase protein diversity
Browning and Gunning demonstrated that placental transfer tissues increase plant reproductive succes Browning and Gunning demonstrated that placental transfer tissues increase plant reproductive succes
Touch the test light to the negative (–) terminal of the battery or a good engine ground to check ... Touch the test light to the negative (–) terminal of the battery or a good engine ground to check ...
Production of monoclonal antibodies Production of monoclonal antibodies
Modern Predication of Peak in Global Oil Production Modern Predication of Peak in Global Oil Production
Effect of an Increase in R&D in the Follower Country on the Steady State Effect of an Increase in R&D in the Follower Country on the Steady State
Video: Parkinson's Disease

For a complete list of videos, visit our video library