Opportunity cost reflected on a production possibilities curve is
A) the cost of reducing the output of one good in order to increase the output of another.
B) the rate at which people are willing to exchange goods as determined by demand and supply.
C) the dollar cost of the good given up to get another good.
D) independent of the slope of the curve.
Ans: A) the cost of reducing the output of one good in order to increase the output of another.
You might also like to view...
When Taylor raised the price of earrings at Taylor's Boutique, her total revenue from selling earrings increased. This suggests that:
A. there are many other boutiques competing with Taylor. B. the demand for Taylor's earrings at the original price was elastic. C. there was excess demand for earrings at the original price. D. the demand for Taylor's earrings at the original price was inelastic.
The first type of labor unions that emerged in the United States were
A) industrial unions. B) craft unions. C) professional unions. D) transportation unions.
Suppose that you borrow $10,000 for one year, and at the end of the year, you must repay $10,450. The interest rate is
A) 14.5 percent. B) 8.0 percent. C) 4.5 percent. D) 2.7 percent.
Which type of money has the lowest opportunity cost?
a. Silver coins b. Gold coins c. Commodity money d. Diamonds e. Fiat money