For each watch Denmark produces, it gives up the opportunity to make 50 pounds of cheese. Germany can produce one watch for every 100 pounds of cheese it produces. Which of the following is true concerning production possibilities curves in both countries?
a. The slopes of the countries' production possibilities frontiers cannot be determined unless the number of workers in each country is known.
b. The countries' production possibilities frontiers have the usual bowed-out shape.
c. On a graph with cheese on the vertical axis, the slope of Germany's production possibilities frontier is everywhere equal to 1/100.
d. On a graph with cheese on the vertical axis, the slope of Germany's production possibilities frontier is steeper than Denmark's.
e. On a graph with cheese on the vertical axis, the slope of Germany's production possibilities frontier is everywhere equal to negative 1/100.
D
You might also like to view...
In monopolistic competition, in the long run firms have
A) a capacity shortage. B) excess capacity. C) an economic profit. D) an economic loss.
Which of the following statements is true of the relationship between average and marginal costs? a. The sum of the marginal cost of a good and its average cost is equal to the total cost of the good. b. The marginal cost of a good is inversely proportional to its average cost. c. The marginal cost of a good is equal to the first derivative of the average cost of the good
d. The average cost of a good is equal to the first derivative of the marginal cost of the good.
With respect to controlling the money supply, the law requires the Fed to take orders from:
a. the President. b. the Speaker of the House. c. no one--the Fed is an independent agency. d. the Secretary of the Treasury.
Ben's nominal annual income in 2009 was $40,000. If the rate of inflation is constant at 10 percent, in order to keep Ben's real income constant, his nominal income in the year 2010 should be:
A. $50,000. B. $44,000. C. $40,000. D. $36,000.