The figure given below represents the PPC in two nations

Question

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4
 
-According to economists, human activity is unresponsive to changes in costs.

Quizplus · Accepted Answer

Economists recognize that changes in costs, such as prices or taxes, can have a significant impact on human behavior and decision making. This is a fundamental concept in economics known as the law of demand, which states that as prices increase, quantity demanded decreases and vice versa. Therefore, human activity is indeed responsive to changes in costs.