A concave production possibilities frontier exhibits
a. increasing opportunity cost
b. decreasing opportunity cost
c. constant opportunity cost
d. diminishing returns
e. returns to scale
A
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There has been a decrease in investment. As a result, real GDP will ________ in the short run, and ________ in the long run
A) increase; decrease to its initial value B) decrease; decrease further C) decrease; increase to its initial level D) increase; increase further
If the demand for a product decreases and the supply of the same product increases, the equilibrium quantity will increase
Indicate whether the statement is true or false
Which of the following will cause an increase in consumer surplus?
a. an increase in the production cost of the good b. a technological improvement in the production of the good c. a decrease in the number of sellers of the good d. the imposition of a binding price floor in the market
Market-oriented solutions to externalities rarely work.
A. True B. False C. Uncertain