The law of increasing opportunity costs causes the production possibilities curve to:
A. be a straight line.
B. slope upwards.
C. have a bowed-out shape.
D. shift inward.
Answer: C
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When the price of a good spikes dramatically, the information conveyed in the market demonstrates that
A) greed has increased among the suppliers. B) greed has increased among the demanders. C) the good has become more scarce than before. D) the good has become less scarce than before.
A welder who quits his job and moves from Houston to Buffalo to try to get a better welding job is said to be:
a. frictionally unemployed. b. underemployed c. cyclically unemployed. d. structurally unemployed.
Assume a nation has a fixed exchange rate, and the central bank decreases the reserve requirement. What is the net effect on the money supply (given)? Answer assuming all the adjustments have worked their way through the macroeconomic system, and it is in equilibrium
a. The change in the money supply is ambiguous. b. The money supply can not change. This is an example of the "Impossible Trilogy." c. The money supply rises. d. The money supply falls.
The rights to own private property and to exchange goods with minimal government interference is
A. economic freedom. B. capital freedom. C. political freedom. D. population freedom.