iPad 815 PM 96 Solution6 An opportunity cost is what must be

Solution

6. An opportunity cost is what must be given up in order to get something else. This statement is true. Other statements like option (b) three economic questions are what to produce, how to produce and for whom to produce.And option(d) Law of increasing opportunity cost implies that as production of one good increases then,more and more of other goods must be given up.

Hence,option(A) is correct.

7. Option (D) Economic growth is illustrated as an inward shift of the production possibilities curve. This statement is false because economic growth is an outward shift of the PPC. Hence, option (D) is correct.

8. Given a production possibilities curve, a point inside the curve represents unemployment (because full resources are not utilized) , on the curve represents full employment (because all the given resources are full utilitzed) and outside the curve is currently unattainable (because with the given resources ,the points outside the PPC is not able to achieve). Hence, Option (D), all of the above is correct.

9. A rightward shift of a nation\'s production possibilities curve could be caused by an increase in resources. Because all other given options shifts the PPC leftward or inward. Hence, option(B) is correct.