ECS1501 Assignment 2 Semester 2 2023 (Solutiona/answers)
Question 2
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On a diagram of a production possibilities curve, opportunity cost is represented by
a point on the vertical axis.
the slope of the production possibilities ...
Question text
On a diagram of a production possibilities curve, opportunity cost is represented by
a point on the vertical axis.
the slope of the production possibilities curve, which indicates that to get more of one good requires less of another.
a point on the horisontal axis.
a ray through the origin.
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Question 3
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An economy that uses new technology
has its PPC shift inward because more unemployment is created.
does not incur an opportunity cost because everyone can use new technology.
has it’s PPC shift outward.
moves along its PPC and incurs an opportunity cost.
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Question 4
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An expansion of the production possibilities curve is
something that has occurred only rarely in history.
called economic growth.
proof that scarcity is not a binding constraint.
a free gift of nature.
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