Consider a PPF for tapes and soda. If the opportunity cost of a tape increases as the quantity of tapes produced increases and also the opportunity cost of a soda increases as the quantity of soda produced increases, then the PPF between the two
goods will be A) a straight, downward-sloping line.
B) a straight, upward-sloping line.
C) bowed outward.
D) All of the above are possible and more information is needed to determine which answer is correct.
C
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Suppose that one-year Treasury bills yield 5 percent in the United States and 6 percent in France. Investors will prefer the U.S. securities if they expect the dollar to __________ against the euro over the next year
A) depreciate by less than 1 percent B) depreciate by more than 1 percent C) appreciate by less than 1 percent D) appreciate by more than 1 percent
The long-run aggregate supply curve is
A) horizontal at the full-employment level of real Gross Domestic Product (GDP). B) vertical at the full-employment level of real Gross Domestic Product (GDP). C) sloping upward due to the effects of price level changes on real Gross Domestic Product (GDP). D) the same as the short run aggregate supply (SRAS) curve.
Fixing the financial system after the Great Recession meant:
a. Finding a way to make the banking and general financial systems solvent, and solving the nation's illiquidity problems. b. Finding private (domestic and foreign) private buyers for U.S. subprime loans. c.Changing banking rules so there was more financial competition. d. Opening long-term financing sources, which would allow banks, companies, and the U.S. government to fund their long-term needs, such as new branches, plants, and infrastructure (e.g., bridges and dams) needs.
If the demand for sardines increases as income decreases, sardines are a(n)
A. normal good. B. complementary good. C. substitute good. D. inferior good.