10 Questions
David's comparative advantage is in coconuts.
False
The opportunity cost of production is lower when a PPF is bowed outward.
True
Opportunity cost, scarcity, economic growth, choice, and unemployed resources are not linked within the PPF framework analysis.
False
If a country's PPF shifts inward due to population growth, the material standard of living of the people will improve on average.
False
Political instability leading to famine can cause a positive shift in the PPF.
False
Specialization and trade do not lead to gains for both parties involved.
False
Comparative advantage is solely determined by the absolute productivity levels of each country.
False
A PPF represents the maximum combinations of goods that can be produced with available resources.
True
Unemployed resources have no opportunity cost in production.
False
Economic growth always leads to an outward shift of the PPF.
False
Explore the concept of scarcity and the definition of economics, focusing on how individuals and societies deal with limited resources. Learn how scarcity affects decision-making and the allocation of resources in economics.
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