Which of the following scenarios might explain what an economy would be operating inside its production possibilities curve? Select one: a. Because damage to natural resources, such as might be caused by deforestation leading to erosion of topsoil, has shrunk the land resource O b. Because of discrimination against employing workers of a certain race or gender O c. Because technological innovations have increased the productivity of labour and capital O d. Because shrinking population has reduced the number of productive workers in the economy
Which of the following scenarios might explain what an economy would be operating inside its production possibilities curve? Select one: a. Because damage to natural resources, such as might be caused by deforestation leading to erosion of topsoil, has shrunk the land resource O b. Because of discrimination against employing workers of a certain race or gender O c. Because technological innovations have increased the productivity of labour and capital O d. Because shrinking population has reduced the number of productive workers in the economy
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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When the economy is operating under the production possibility curve then this implies that all the resources in an economy are not utilized in an optimum manner or fully.
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