Author Question: An increase in production of one good will have zero opportunity cost only if the economy initially ... (Read 46 times)

bobbysung · **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?

Bigfoot1984 · **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 · **Reply #2 on:** Jun 30, 2018

Correct answers!

Bigfoot1984 · **Reply #3 on:** Jun 30, 2018

Great! Please up vote

Author Question: An increase in production of one good will have zero opportunity cost only if the economy initially ... (Read 46 times)

bobbysung

An increase in production of one good will have zero opportunity cost only if the economy initially ...

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Bigfoot1984

An increase in production of one good will have zero opportunity cost only if the economy initially ...

bobbysung

An increase in production of one good will have zero opportunity cost only if the economy initially ...

Bigfoot1984

An increase in production of one good will have zero opportunity cost only if the economy initially ...