The fact that we cannot operate at a point outside a production possibilities frontier indicates there is
A. increasing opportunity cost.
B. unemployment.
C. constant opportunity cost.
D. scarcity.
Answer: D
You might also like to view...
The Law of Supply states that:
A) supply creates its own demand. B) the quantity supplied of a good will always equal the quantity of the good demanded. C) the quantity supplied of a good rises when the price rises. D) at the equilibrium price, there is always some excess supply in the market.
The Bahamas and Cayman Islands are known for their warm, sandy beaches and their
A) Edge Act corporations. B) shell banks. C) section 20 affiliates. D) high taxation.
A monopoly exists because of
a. barriers to entry b. the large number of buyers and sellers c. the absence of barriers to entry d. collusion among the dominant firms e. the absence of exclusive government franchises
Dobson Construction has an investment project that would cost $150,000 today and yield a one-time payoff of $167,000 in three years. Among the following interest rates, which is the highest one at which Dobson would find this project profitable?
a. 5 percent b. 4 percent c. 3 percent d. 2 percent