BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Because shrinking population has reduced the number of productive workers in the economy
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Because technological innovations have increased the productivity of labor and capital
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Because damage to natural resources, such as might be caused by deforestation leading to erosion of topsoil, has shrunk the land resource.
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Because of unemployment or underemployment of labor, perhaps due to discrimination against employing workers of a certain race or gender.
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Detailed explanation-1: -Answer and Explanation: The correct option is d. Because of unemployment or underemployment of labor, perhaps due to discrimination against employing workers of a certain race or gender. An economy is operating at a point within its PPC when there is underutilization of resources.
Detailed explanation-2: -The countries would always want to be on the production possibilities curve because the surface of the curve depicts optimality. The combination of goods, taken on the curve, will depict the adequate combination with the help of resources and their optimal usage.
Detailed explanation-3: -So if a firm is operating inside the production possibility curve, then it indicates that the firm is not utilizing the supplied resources and technology efficiently.
Detailed explanation-4: -So if a firm is operating inside the production possibility curve, then it indicates that the firm is not utilizing the supplied resources and technology efficiently.