If a country has a bowed out (concave to the origin) production possibility frontier then production is said to be subject to ?

Related Mcqs:

1. Any combination of products inside the production possibility frontier is ?

   A. Allocatively inefficient B. X inefficient C. Consumer inefficient D. Productively inefficient...

2. An economy may operate outside the production possibility Frontier if ?

   A. It is not utilizing its resources fully B. It is being productively efficient C. It is a mixed economy D. It is trading other economies...

3. An outward shift of the production possibility frontier may be caused by ?

   A. An increase in demand B. More government spending C. Better training of employees D. Productive inefficiency...

4. If a country has a liner (downward sloping) production possibilities frontier, then production is said to be subjected to ?

   A. constant opportunity costs B. decreasing opportunity costs C. first increasing and then decreasing opportunity costs D. increasing opportunity costs...

5. Suppose we measure the quantity of good X on the horizontal axis and the quantity of good Y on the vertical axis If indifference curves are bowed inward, as we move from having an abundance of good X to having an abundance of good Y, the marginal rate of substitution of good Y for good X (the slope of the indifference curve) ?

   A. rises B. stays the same C. could rise or fall depending on the relative prices of the two goods. D. falls...

6. Which of the following will not shift a country’s production possibilities frontier outward ?

   A. an advance in technology B. an increase in the labor force C. an increase in the capital stock D. a reduction in unemployment...

7. Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land Note that wages are the returns to labor and rents are the returns to land According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B: A. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A ?

   XA. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A...

8. Points on the production possibilities frontier are ?

   A. inefficient B. normative C. unattainable D. efficient...

9. Possibility of negative events or changes in the business climate of country is called?

   A. Domestic risk B. Political risk C. National risk D. Country risk...

10. The theory that states that a country has a comparative advantage in the production of a product if that country is relatively well endowed with inputs used intensively in the production of that product is the?

    A. Ricardo Malthus theorem B. Heckscher Ohlin theorem C. Lucas-Laffer theorem D. Friedman Samuelson theorem...