If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be
A. a negatively sloped straight line.
B. negatively sloped and "bowed inward" toward the origin.
C. negatively sloped and "bowed outward" from the origin.
D. a positively sloped straight line.
Answer: C
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Which factor of production accounts for the highest percentage of the income that the production process generates in the United States?
A. Capital B. Natural resource C. Land D. Labor
One reason the luxury tax on yachts imposed by the U.S. Congress in 1991 failed to produce much tax revenue was that the demand for yachts was elastic.
Answer the following statement true (T) or false (F)
In economics, a good is "free"
What will be an ideal response?
We have heard the predictions regarding the large number of people that will be retiring over the next 25-50 years and the strain this is going to place on the federal budget. Assuming that federal borrowing will have to increase, what is the likely impact going to be on the risk and term structure (if any) of interest rates and why?
What will be an ideal response?