If opportunity costs are constant, then
A. factors of production must not be fully employed.
B. the production possibilities curve is a negatively sloped straight line.
C. the production possibilities curve bows outward.
D. the production possibilities curve does not exist.
Answer: B
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The country of Bienmundo does not trade with any other country. Its GDP is $30 billion. Its government purchases $5 billion worth of goods and services each year and collects $6 billion in taxes. Private saving in Bienmundo amounts to $5 billion. What are consumption and investment in Bienmundo?
a. $17 billion and $8 billion, respectively. b. $19 billion and $6 billion, respectively. c. $19 billion and $8 billion, respectively. d. $17 billion and $6 billion, respectively.
In corporations, which of the following are principals but not agents?
a. shareholders b. the board of directors c. managers d. workers
If the elasticity of demand for a service is 0.4 and price is raised,
A. total revenue will fall. B. total revenue will rise. C. total revenue will stay the same. D. there is no way to determine whether total revenue will rise, fall, or remain the same.
The term market always refers to
a. an arrangement in which buyers and sellers meet at a specific time and place. b. an arrangement in which an auctioneer plays at least a limited role in setting prices. c. a group of buyers and sellers of a particular good or service. d. All of the above are correct.