Net investment is negative. Answer true or false and then explain your answer. A simple true or false will gain you no credit. What counts is your explanation. For full credit your explanation must be complete and clear.
Good models are rich in detail.
They leave nothing to the imagination. One reason production possibilities curves have the shape they do is because resources are not transferable. One reason the law of increasing costs holds is that resources are specialized. The equilibrium point is the optimal or best point since it is where supply equals demand. Prices play a more important role in command economies than they do in market economies since in market economies democratically elected officials intervene to protect consumers and producers.