Why is a production possibilities frontier bowed out (concave)?
A) The bowed shape reflects constant opportunity cost.
B) The bowed shape reflects decreasing opportunity cost.
C) The bowed shape indicates that opportunity cost at first decreases at a decreasing rate, and then begins to decrease at an increasing rate.
D) The bowed shape indicates that opportunity cost at first increases at a decreasing rate, and then begins to increase at an increasing rate.
E) The bowed shape reflects increasing opportunity cost.
E
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Over the last 50 years, in the United States the labor force participation rate for women ________, the labor force participation rate for men ________, and the over-all labor force participation rate ________
A) increased; decreased; increased B) did not change; increased; increased C) increased; decreased; did not change D) decreased; increased; increased E) increased; did not change; increased
When demand increases, the equilibrium price ________ and the equilibrium quantity ________
A) rises; decreases B) falls; decreases C) rises; increases D) falls; increases
Among the factors that create a deadweight loss and inefficiency are
A) minimum wages, but not taxes. B) rent ceilings, but not taxes. C) taxes, but not minimum wages or rent ceilings. D) minimum wages, rent ceilings, and taxes.
The interest rate:
A. is expressed as a percentage per dollar borrowed and per unit of time. B. tells us how much less money is worth today than in the future. C. exists only because lending is risky. D. All of these statements are true.