As you move down the production possibility frontier, the absolute value of the marginal rate of transformation
A. increases.
B. initially decreases, then increases.
C. decreases.
D. initially increases, then decreases.
Answer: A
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Assuming all else equal, if the production technology available to a nation improves, its aggregate production function:
A) shifts inward. B) becomes vertical. C) shifts upward. D) becomes horizontal.
Which of the following pairs of goods would be considered complementary?
a. Coca-Cola and Pepsi b. computers and computer software c. radios and televisions d. mass transit and private automobiles e. compact discs and cassette tapes
An implication of the median voter theorem is that, in a race between Republicans and Democrats,
a. if Republicans want to win, they will take a "middle-of-the-road" stance on many issues. b. if Democrats want to win, they will take an extreme stance on many issues. c. Republicans and Democrats go to extremes to differentiate themselves from one another. d. Republicans and Democrats work hard to identify the fringe voters.
Technological advances will cause the supply curve to:
A. shift to the left. B. become steeper. C. become flatter. D. shift to the right.