According to the law of increasing opportunity cost,
a. opportunity cost rises as technology improves
b. the production possibilities frontier is a straight line
c. opportunity cost rises as society produces more of a good or service
d. the production possibilities frontier is convex with respect to the origin (that is bowed toward the origin)
e. monetary costs rise as opportunity cost rises
C
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The gap that exists when equilibrium real GDP is greater than the level of real GDP shown by the position of the long-run aggregate supply curve is
A) the short-run aggregate supply curve. B) money illusion. C) a recessionary gap. D) an inflationary gap.
The supply of labor in any one market depends on the opportunities available in other markets
a. True b. False Indicate whether the statement is true or false
When the supply of a good decreases and the demand for the good remains unchanged, consumer surplus
a. decreases. b. is unchanged. c. increases. d. may increase, decrease, or remain unchanged.
Which of the following is not an interpretation of the "beauty premium"?
a. Beautiful workers are not willing to work for lower wages. b. Good looks are a type of innate ability causing the worker to be more valuable to the firm. c. The beauty premium is a type of discrimination. d. Beauty is an indirect measure of other types of ability.