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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In early 2013, two economists debated the question of whether:
a. the trade deficit should be reduced rapidly or steadily b. the United States was past its prime c. the percentage of health care to GDP was a warning sign for the economy d. none of these
In the period of U.S. economic history known as the Great Depression, the rate of inflation was generally
A. trending upward. B. positive. C. uncertain. D. negative.
Why do solutions to the principal–agent problem sometimes produce problems? Give an example
What will be an ideal response?
"In the 1980s the pain which results from a large government deficit was deferred, placed on future taxpayers since foreigners loaned money to the government to pay the debt." Gordon suggests that this "pain" maybe deferred forever if
A) the government uses the "deficit funds" to provide taxpayers increased future benefits from which to pay the interest to foreigners. B) monetary policy is tighter in the future. C) fiscal policy is tighter in the future. D) B and C are correct.