Question: QUESTION 10 The production possibilities curve is negatively sloped because when the economy is a…

30 Apr Question: QUESTION 10 The production possibilities curve is negatively sloped because when the economy is a…

Posted at 21:08h in 2Past Paper by Exams

QUESTION 10 The production possibilities curve is negatively sloped because when the economy is at full employment, people want less of a good as its price falls if too many goods are produced, people will become unemployed next year there is an opportunity cost of producing more of one type of good international trade declines QUESTION 11 Adding more resources or improving technology causes no change in a production possibilities curve the production possibilities curve to shift out the production possibilities curve to become positively sloped the production possibilities curve to shift in QUESTION 12 When an economy has a fixed amount of resources, a point on the production possibilities curve itself represents unemployment an unattainable choice rising prices and high inflation efficiency and full employment

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