What does the term "increasing marginal opportunity cost" mean? How are increasing marginal opportunity costs represented on a bowed out production possibilities frontier?
What will be an ideal response?
Increasing marginal opportunity costs means that as more and more of a product is made, the opportunity cost of making each additional unit rises. They are represented by moving down a bowed out production possibilities frontier.
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A budget constraint shows
A. all of the possible combinations of goods that can be purchased with a specific budget. B. all of the combinations of sets of goods that yield the same level of satisfaction. C. all of the goods the consumer gets positive marginal utility from when the goods are consumed. D. all of the goods that a consumer substitutes for other goods when prices fall.
Rising health care costs have the following implications, except:
A. Faster growth of wages to workers B. A growing number of uninsured workers C. Large numbers of personal bankruptcies D. Outsourcing and off-shoring of firms' operations
A decrease in investment causes the price level to ________ in the short run and ________ in the long run
A) decrease; decrease further B) increase; decrease C) increase; increase further D) decrease; increase
The above figure shows the isoquants for producing steel. Increasing returns to scale are
A) present when producing less than 10,000 tons. B) present when producing less than 20,000 tons. C) present when producing less than 30,000 tons. D) never present.