What does the negative slope of the production possibilities frontier imply?
A) Diminishing marginal utility.
B) The only way to increase one person's utility is to decrease the other's.
C) Diminishing marginal rates of technical substitution.
D) The only way to increase output of one good is to decrease output of another.
D
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When consumers spend and buy things regardless of their level of income, this is known as
A) bad financial management. B) using credit to its maximum. C) living the good life. D) autonomous consumption spending.
A situation in which one firm's actions with respect to price, quality, advertising and related changes may be strategically countered by the reactions of one or more other firms in the industry is known as
A) strategic dependence. B) economies of scale. C) the concentration ratio. D) barriers to entry.
Suppose we were analyzing the pound per Swiss franc foreign exchange market. If Switzerland's interest rate rises relative to England and nothing else changes, then the:
a. The supply of Swiss francs in the foreign exchange market falls, and the demand for Swiss francs in the foreign exchange market rises, causing an appreciation of the Swiss franc. b. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market falls, causing an appreciation of the Swiss franc. c. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market rises, causing an uncertain change in the value of the Swiss franc. d. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market falls, causing a depreciation of the Swiss franc. e. Neither supply nor demand in the foreign exchange market change because relative international prices influence trade flows and not the exchange rate.
In the ordered pair (3, 6), 3 is the
a. x-coordinate. b. y-coordinate. c. origin. d. slope.