To graphically demonstrate the principle of increasing marginal opportunity cost, the production possibility curve must be:
A. bowed out.
B. flat.
C. bowed in.
D. straight.
Answer: A
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A maximum limit set on the amount of a specific good that may be imported into a country over a given period of time is called a
A. voluntary export restriction. B. nontariff barrier. C. quota. D. tariff.
All inferior goods have upward-sloping demand curves.
Answer the following statement true (T) or false (F)
All else constant, an increase in productivity has the effect of causing:
A) the marginal product of labor to increase and no effect on the average product of labor. B) the average product of labor to increase and no effect on the marginal product of labor. C) the marginal product of labor to increase and the average product of labor to decrease. D) both the marginal and average product of labor to increase.
Indifference curves
A) are vertical. B) are horizontal. C) slope upward. D) slope downward.