Figure 30-3. On the graph, MS represents the money supply and MD represents money demand. The usual quantities are measured along the axes.

The fact of increasing opportunity cost when moving on the PPF means that

A) to increase the production of one product requires larger and larger sacrifices of the other good. B) to decrease the production of one product requires smaller and smaller sacrifices of the other good. C) to increase the production of one product requires smaller and smaller sacrifices of the other good. D) when the government forces a movement from one point on the PPF to another point, no production is lost. E) the PPF will be a negatively sloped straight line.

For a monopoly able to perfectly price discriminate, the marginal revenue curve coincides with the demand curve

Indicate whether the statement is true or false

The budget constraint represents:

a. all possible consumption combinations of goods that someone can afford when all income is spent. b. a single consumption combination of goods that someone can afford when all income is spent. c. all possible consumption combinations of goods that someone can afford when disposable income is spent. d. all possible consumption combinations of goods that society can afford when all income is spent.

An economy in which output has decreased and prices have increased would suggest that there has been a:

A. negative demand side shock. B. negative supply side shock. C. positive demand side shock. D. positive supply side shock.