Increasing opportunity cost along a bowed-out production possibilities frontier occurs because
A) of inefficient production.
B) of the scarcity of factors of production.
C) of ineffective management by entrepreneurs.
D) some factors of production are not equally suited to producing both goods or services.
D
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As a monopolist expands its output:
A) the difference between the demand curve and the marginal revenue curve decreases. B) the difference between the demand curve and the marginal revenue curve increases. C) the slope of the demand curve decreases, while the slope of the marginal revenue curve increases. D) the slope of the demand curve increases, while the slope of the marginal revenue curve decreases.
The above figure shows the Lorenz curves for four different countries. Which of the following statements CAN be made on the basis of the graph?
A) Country C has the best balance between equity and efficiency. B) Country A is a socialist country. C) The income distribution is more equal in country B than in country D. D) all of the above
Suppose output is $440 billion, government purchases are $40 billion, desired consumption is $320 billion, and net exports are $35 billion. Then desired investment equals
A) $20 billion. B) $30 billion. C) $35 billion. D) $45 billion.
In a monopoly where the marginal revenue and price are, respectively, given by $3 and $6, the price elasticity of demand is:
A. ?0.5. B. ?1.5. C. ?1. D. ?2.