The shape of the production possibilities curve in the above figure indicates that
A. production of both corn and cloth is characterized by constant costs.
B. production of both corn and cloth is characterized by increasing costs.
C. production of corn is characterized by increasing costs while the production of cloth is characterized by decreasing costs.
D. production of corn is characterized by constant costs and the production of cloth is characterized by increasing costs.
Answer: B
You might also like to view...
The own price elasticity of Anne's apple pies is 5 . If the aggregate market for apple pies has an own price elasticity of 1.25, Anne's apple pies has an approximate market share of
a. 6.25% b. 25% c. 10% d. 20%
If a large decrease in rent leads to a firm cutting back on the labor it uses,
A. the output effect outweighs the substitution effect. B. the substitution effect outweighs the output effect. C. the substitution and output effects are equal. D. there is no way of determining the relative strengths of the output and substitution effects.
According to the U.S. Secret Service, approximately $2.6 billion of U.S. paper currency in circulation is counterfeit. Undetected counterfeit currency which is spent and circulated in the marketplace is an example of the counterfeit currency being used as a:
A. medium of exchange. B. commodity money. C. store of value. D. bank reserve.
Per capita means per person.
Answer the following statement true (T) or false (F)