Author Question: Consider the production possibilities curve for an economy producing only two commodities wheat ... (Read 157 times)

cartlidgeashley · **on:** Jun 30, 2018

Consider the production possibilities curve for an economy producing only two commodities wheat (represented on the X axis) and wine (represented on the Y axis). A movement up along the production possibilities curve PPC will imply:
a. an increase in wheat production.
b. an increase in both wheat and wine production.
c. a decline in both wheat and wine production.
d. an increase in wine production.
e. no change in either wheat or wine production.

Question 2

If a country wanted to maximize the value of its output, each job should be carried out by the person who:
a. has the highest opportunity cost.
b. has a comparative advantage in that activity.
c. can complete the particular job most rapidly.
d. enjoys that job the least.