When a production possibilities frontier is bowed outward, the opportunity cost of the first good in terms of the second good increases as more of the second good is produced
a. True
b. False
Indicate whether the statement is true or false
False
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Why doesn't the Fed eliminate inflation from the economy entirely?
a. It is incapable of doing so. b. It believes that inflation is bad for the economy. c. It believes that the measured inflation rate understates the true rate of inflation. d. It recognizes that continuing inflation helps labor markets adjust more easily. e. If it did so, no one would get a raise in salary.
All of the following would affect the position of the supply curve for cranberries, except the:
a. Cost of fertilizers for cranberry production b. Development of a new pest control for cranberries c. Price of agricultural land for cranberries d. Popularity of cranberry drinks
We know with certainty that a consumer will buy a newly introduced product rather than an existing product when the:
A. MU/P of the new product exceeds the MU/P of the existing product. B. price of the new product is less than the price of the existing product. C. MU of the new product is more than the MU of the existing product. D. law of diminishing marginal utility applies to the existing product.
The fraction of deposits that banks are required to keep is known as the
A) discount rate. B) required reserve ratio. C) deposit multiplier. D) money multiplier.