If the United States decides to convert automobile factories to tank production, as it did during World War II, but finds that some auto manufacturing facilities are not well suited to tank production, then
A. Increasing opportunity costs will occur with greater tank production.
B. The production possibilities curve between tanks and automobiles will appear as a straight line.
C. The production possibilities curve between tanks and automobiles will shift outward.
D. Decreasing opportunity costs will occur with greater automobile production.
Answer: A
You might also like to view...
Suppose the annual growth rate of real GDP for the nation of Svengali is 5% and the growth rate of velocity is 0%. If the money supply growth rate decreases from 4% to 2%, what is the new rate of inflation in Svengali?
A) -3%. B) -1%. C) 3%. D) 7%.
Refer to the above figure. An unregulated natural monopolist's profits will be
A) profits equal to Q1 times distance a-c. B) losses equal to Q4 times distance f-g. C) losses equal to Q3 times distance d-e. D) profits equal to Q1 times distance a-b.
Christine is an artist who creates custom cookie jars. Her annual revenue from selling the cookie jars is $90,000 . The annual explicit costs of the materials used to make the cookie jars are $54,000 . Christine used $5,000 from her personal savings account to buy pottery tools for her business. The savings account paid 1% annual interest. Christine could earn $6,000 per year as a tax preparer
What is the annual accounting profit of her cookie jar business? a. $36,000 b. $35,950 c. $30,000 d. $29,950
Every Christmas, you buy yourself a lottery ticket. This year, you win the $500 million Powerball. This would most likely cause your consumption function to
A. shift downward temporarily. B. shift upward permanently. C. shift downward permanently. D. shift upward temporarily.