If the opportunity cost of producing extra units of one good (expressed in terms of the amount of another good given up) remains constant, then the shape of the production possibilities curve is:
A. A straight horizontal line
B. A straight downward-sloping line
C. An upward-sloping line
D. A vertical line
Answer: B
You might also like to view...
If a union negotiates a wage greater than the competitive wage, the total union wage bill will necessarily decrease
a. True b. False
Which of the following is an example of an injection into the circular flow of income and expenditure?
a. Government spending b. Imports c. Disposable income d. Net taxes e. Saving
Under monetary neutrality, an increase in the money supply causes output to ________ and the price level to ________
A) rise; rise B) rise; not change C) not change; not change D) not change; rise
A simple linear demand function may be stated as Q = a - bP + cI where Q is quantity demanded, P is the product price, and I is consumer income. To compute an appropriate value for c, we can use observed values for Q and I and then set the estimated income elasticity of demand equal to:
What will be an ideal response?