As you move down the production possibility frontier, the absolute value of the marginal rate of transformation
A. increases.
B. initially decreases, then increases.
C. decreases.
D. initially increases, then decreases.
Answer: A
You might also like to view...
An example of a fiscal stimulus is
A) increasing the quantity of money. B) lowering the interest rate. C) decreasing government expenditure. D) decreasing needs-tested spending. E) cutting taxes.
The above table gives data for the nation of Sueland. What is the private sector balance?
A) $11 billion B) -$11 billion C) -$43 billion D) $43 billion
A put option gives the owner the
A) right to sell the underlying security. B) obligation to sell the underlying security. C) right to buy the underlying security. D) obligation to buy the underlying security.
Governments can most effectively encourage a firm to produce the efficient level of output of a good whose production causes a beneficial externality by
A. increasing the demand at every price for the good. B. subsidizing the production of the good. C. taxing the production of the good. D. imposing a price ceiling on the good.