Which statement is true?
A)The U.S.standard of living is higher than that of India because we have more capital.
B)It is easier to attain full production than full employment.
C)We often operate outside our production possibility frontier.
D)All of the statements are true.
E)The U.S.standard of living is higher than that of India because we have more capital AND we often operate outside our production possibility frontier.

Question

Quizplus · Accepted Answer

The U.S. standard of living is higher than that of India primarily because the U.S. has more capital (both physical and human), which contributes to higher productivity and incomes. The other statements are not accurate: it is not necessarily easier to attain full production than full employment, and economies typically operate within their production possibility frontier, not outside of it.

Which Statement Is True