Consider the production possibilities frontier displayed in the figure shown. Which of the following statements is true? The opportunity cost of one watermelon:
A. is zero at point C.
B. is constant.
C. will decrease as more watermelons are produced.
D. will increase as more watermelons are produced.
Answer: B
You might also like to view...
Refer to Table 9-12. Prior to trade, what was the opportunity cost to produce 1 sword in Estonia?
A) 1/3 of a belt B) 3/5 of a belt C) 1.67 belts D) 3 belts
According to the graph shown, if the market is in equilibrium, consumer surplus is:
A. $30.
B. $20.
C. $50.
D. $60
Deflation
a. reflects falling price levels b. was prevalent during the oil shocks of the 1970s c. under the current trends will cause consumers' purchasing power to shrink d. has been persistent in the U.S. economy since the Great Depression e. is the same as stagflation
Otis transfers $200 from his savings account to his money market fund. This transaction will
A. decrease M2 and increase M1. B. decrease M1 and increase M2. C. decrease both M1 and M2. D. leave M1 and M2 unchanged.