If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be
A. a negatively sloped straight line.
B. negatively sloped and "bowed inward" toward the origin.
C. negatively sloped and "bowed outward" from the origin.
D. a positively sloped straight line.
Answer: C
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
During World War II (1941–45), Golden (1990) argues, the opportunity cost of women staying at home
(a) decreased. (b) stayed the same. (c) increased. (d) cannot be measured.
The international financial market moved towards equilibrium under the gold standard due to
A) shifts in exchange rates caused by changes in supply and demand for foreign exchange. B) changes in interest rates. C) negotiations among central banks. D) flows of gold among countries.
Properties of long-run competitive equilibrium with free entry include:
A. an equilibrium price equal to the minimum AC. B. firms earning zero profits. C. active firms producing at their efficient scales of production. D. All of these are properties of long-run competitive equilibrium.