Refer to the production possibilities frontier in the figure above. Which of the following movements requires the largest opportunity cost, in terms of good Y forgone, per extra unit of good X?
A) from point a to point b
B) from point b to point c
C) from point c to point d
D) from point d to point e
D
You might also like to view...
Consumer surplus is created when
a. a person trades away a good that yields diminishing marginal utility b. a person's total utility increases when consuming an additional unit of a good c. a good is purchased at a price that is less than the price the consumer would have been willing to pay d. the total utility of a good is greater than its marginal utility e. many consumers want to buy a good and the price goes up
Why is a period of stagflation part of the normal aftermath of a period of excessive aggregate demand?
Providing citizens with enforceable property rights to resources
a. increases resource conservation and decreases wasteful resource use. b. promotes economic prosperity and thus increases demand for environmental quality. c. provides people with a strong incentive not to damage the privately owned resources of others. d. does all of the above.
Employment can rise in one region of the country while it falls in another
a. True b. False Indicate whether the statement is true or false