The notion of opportunity cost can be represented graphically by the
a. area inside the production possibilities frontier.
b. slope of the production possibilities frontier.
c. vertical distance from the horizontal axis to the production possibilities frontier.
d. horizontal distance from the vertical axis to the production possibilities frontier.
e. sum of the horizontal and vertical distances to the production possibilities frontier.
b
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Refer to Table 2.4. What can be observed about the given resources?
A) Land is fixed but fertilizer is variable. B) Land and fertilizer are both fixed. C) Land is variable but fertilizer is fixed. D) Land and fertilizer are both variable.
The above figure shows the market for pizza. Which figure shows the effect of a new report by the U.S. Surgeon General that eating pizza lowers cholesterol levels, an outcome many people want?
A) Figure A B) Figure B C) Figure C D) Figure D
Fiscal policy has a greater impact in a closed economy than it does in an open economy
Indicate whether the statement is true or false
Suppose a nation's saving, gross private domestic investment, government spending, and taxes remained unchanged from Year 1 to Year 2, but tariffs and quotas on imported goods and services rose by 20% from Year 1 to Year 2 . The net effect on the balance on goods and services would be:
a. It would have no effect on the balance on goods and services. b. It would make the balance on goods and services more positive. c. It would make the balance on goods and services more negative. d. There is no way to tell what effect it would have on the balance on goods and services.