Question 6 (1 point) If society fully employs its resources to their capacity, t

Question

Question 6 (1 point) If society fully employs its resources to their capacity, then it will be operating at a point A) beneath its production possibilities curve. B) at a corner of its production possibilities curve. C) somewhere along its production possibilities curve. D) outside of its production possibilities curve. Save Question 7 (1 point) The law of increasing opportunity costs causes the production possibilities curve to A) be a straight line. B) slope upwards. C) have a bowed-out shape. D) shift inward.

Explanation / Answer

6)c) somwhere along its production possibility curve because beneath PPC means underutilisation of resources and outside PPC means resources are not enough to produce at that level.

7)C) have a bowed out shape because if we take two goods like trucks and bread we see that the resources for producing both are different and as we produce more of one we give up more of another. This is increasing opportunity cost.However if the resources to produce both are same vans and cars we give up same amount of one to produce same amount of another and PPC will be a straight line

10)A) Investing in new capital goods because this will help to produce more and economy wil grow..

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