The law of increasing relative costs, depicted by the concavity of the production opportunities frontier, is most closely related to the
a. downward slope of the demand curve.
b. upward slope of the demand curve.
c. downward slope of the supply curve.
d. upward slope of the supply curve.
d
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
Figure 4.5 illustrates a set of supply and demand curves for hamburgers. An increase in supply and a decrease in demand are represented by a movement from
A) point d to point a. B) point b to point d. C) point a to point c. D) point d to point b.
The trade-off between risk and expected value is exactly the kind of choice you have to make whenever you think about investing money in:
A. stocks. B. retirement funds. C. bonds. D. One needs to think about the trade-off to invest in all these things.
Assume that capital and labor are complementary inputs. If the firm decreases the amount of capital it employs, this would
A. cause the firm to move down along the MP schedule for labor. B. shift the firm?s MP schedule for labor to the left. C. shift the firm?s MP schedule for labor to the right. D. cause the firm to move up along its MP schedule for labor.