When the production possibilities frontier is bowed outwards, the opportunity cost of producing more of one good
A) increases in terms of the amount foregone of the other good.
B) decreases in terms of the amount foregone of the other good.
C) remains constant.
D) cannot be determined.
A
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According to the circular flow diagram, the dollar value of a nation's output is equal to
A) profits. B) total income. C) net income minus taxes. D) wages.
When prices are measured in terms of fixed (base-year) prices they are called ________ prices
A) nominal B) real C) inflated D) aggregate
Which of the following occurs during a recession?
a. Output rises, employment rises and unemployment falls. b. Output falls, employment falls and unemployment rises. c. Output rises, employment falls and unemployment falls. d. Output rises, employment rises and unemployment rises. e. Output rises, employment rises and tax revenues fall.
Regarding wage differences among various groups of workers — blacks and whites, men and women, etc. — most economists believe that
a. no such differences are evident from the available data. b. most of the differences are attributable to discrimination. c. some of the wage differences are attributable to discrimination, but there is disagreement about how much. d. none of the differences are attributable to discrimination.