A production possibilities curve that is linear (a straight line):
a. illustrates a tradeoff in which opportunity cost of a good increases with the level of its production.
b. illustrates a tradeoff in which the opportunity cost of a good decreases with the level of its production.
c. illustrates a tradeoff in which the opportunity cost of a good is constant at all levels of production.
d. demonstrates the fallacy of composition.
c
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The total cost curve generally has
A. slope values that first decrease and then increase rapidly. B. slope values that first increase rapidly and then decrease. C. increasing slope values. D. decreasing slope values.
Moral hazard is a
a. Pre-contractual problem b. Post contractual problem c. Post firing problem d. None of the above
When the average total cost is $16 and the total cost is $800, then the number of units the firm is producing is
A) impossible to determine with the information given. B) 12,800. C) 784. D) 50.
Why does growth occur in two-sector growth models?
What will be an ideal response?