While producing on the production possibilities frontier, if additional units of a good could be produced at a constant opportunity cost, the production possibilities frontier would be
A) bowed outward.
B) bowed inward.
C) positively sloped.
D) a straight line.
D
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Utility is the pleasure, satisfaction, or enjoyment derived from consumption.
Answer the following statement true (T) or false (F)
The above figure gives your budget line between CDs and magazines. Which combination of CDs and magazines is not affordable?
A) combination a B) combination b C) combination c D) both combinations b and d
Suppose that the Fed expects to increase the money supply by $49 billion, but economic agents expect that the increase will be closer to $75 billion. Using rational expectations theory, the result will be ______________ Real GDP and a ________________ price level
A) lower; higher B) lower; lower C) higher; higher D) higher; lower
Based on the graphic for perfect competition versus monopoly, which is the greatest area?
a. consumer surplus in a monopoly
b. consumer surplus in perfect competition
c. producer surplus in a monopoly
d. producer surplus in perfect competition