If a production possibility frontier is a straight line, it tells us that the opportunity cost of producing one more unit of good X is:
A) an increasing amount of good Y.
B) a decreasing amount of good Y.
C) equal to the inverse of the amount of good Y.
D) a constant amount of good Y
Answer: D) a constant amount of good Y
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Explain the lingering effects of colonialism and how it is still playing a role in hindering economic development in the developing world
What will be an ideal response?
Slaves were
(a) unprofitable substitutes for wage labor on plantations. (b) profitable complements to capital equipment. (c) denied the use of shovels, hoes and axes. (d) all of the above.
The perfectly competitive firm's demand curve has
A) a negative slope. B) a positive slope. C) an undefined slope. D) a slope of 0.
Red Stone Creamery currently hires 5 workers. When it added a 6th worker, its output actually fell. Which of the following statements is true?
A) The total product becomes negative. B) The average product of the sixth worker is negative. C) The sixth worker is not as skilled as the fifth worker. D) The marginal product of the sixth worker must be negative.