-In Exhibit 2.9, it can be inferred that:
A) point A is preferred to point B.
B) point A is preferred to point E.
C) point A is preferred to point D.
D) point B is preferred to point A.
E) point B is preferred to point C.
Law of increasing opportunity cost states:
A) that opportunity cost decreases as production of one output expands.
B) the production possibilities frontier bows outwards.
C) that the stock of technology is increasing.
D) the production possibilities frontier bows inwards.
In Exhibit 2.9, if the economy decides to locate at point E, then:
A) this is the best choice for this economy.
B) the maximum number of consumption goods is being produced.
C) the economy has not achieved full employment.
D) the economy could not survive because no food is being produced.
E) the economy has not achieved maximum efficiency.
In Exhibit 2.9, which of the following is not true regarding point H? Point H:
A) cannot be achieved by this economy today.
B) could be achieved today only if the economy achieved full employment.
C) could be achieved in the future by an enlargement of the economy's resource base.
D) could be achieved in the future by an advancement in technology.
E) could be achieved in the future by growth in the economy.