A farmer has 100 acres of land on which he can grow soybeans or corn. An acre of land yields 200 bushels of soybeans or 100 bushels of corn. The above figure refers to the farmer's
A. production possibilities curve.
B. demand curve.
C. substitution options curve.
D. opportunity cost curve.
Answer: A
You might also like to view...
When the balance of trade is in balance, we know with certainty that
A) the value of all debit transactions equals the value of all credit transactions. B) the value of exports of goods equals the value of imports of goods. C) the value of capital exports equals the value of capital imports. D) the value of exports of goods and services equals the value of imports of goods and services.
The monetary stimulus enacted in the fall of 2001 provides support for those economists who favor
a. stable money supply growth. b. activist monetary policy. c. rules-governed monetary policy. d. fixed rates of growth for the money supply.
Which of the following is not true about a structural deficit?
A. It exists even if the economy is at full employment. B. It is determined in part by the actions of Congress. C. It definitely gets larger as unemployment increases. D. It is influenced by discretionary fiscal spending.
Which of the following is not a valid generalization concerning the relationship between price and costs for a purely competitive seller in the short run?
A. Price must be at least equal to average total cost. B. Price times quantity produced must be equal to or greater than total variable cost for some level of output or the firm will close down in the short run. C. Price may be equal to, greater than, or less than average total cost. D. Price must be equal to or greater than minimum average variable cost for the firm to continue producing.