A straight line production possibilities curve implies increasing opportunity costs
a. True
b. False
Indicate whether the statement is true or false
False
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Refer to the table below. In moving from combination a to e, the marginal rate of substitution of X for Y:
The table shows an indifference schedule for several combinations of X and Y.
A. Increases
B. Decreases
C. Stays the same
D. Decreases and then increases
Which of the following goods would be considered legally non-excludable?
Suppose Arf n' Barf restaurant has a monopoly on restaurant food in a certain small town. Their rent, which is one of several fixed costs they pay whether they sell food or not, has gone up. In the short run, the Arf n' Barf should
a. pay the higher rent and increase menu prices b. pay the higher rent and leave menu prices unchanged c. pay the higher rent and lower prices d. go out of business e. shut down
Which of the following rates of growth in the money supply is likely to lead to the highest level of inflation in the economy?
a. 1 percent per year b. 2 percent per year c. 3 percent per year d. 4 percent per year