If an economy's production possibility frontier is negatively sloped and "bowed outward" from the origin, then the opportunity cost of producing a good
A. remains constant as less of that good is produced.
B. remains constant as more of that good is produced.
C. decreases as more of that good is produced.
D. increases as more of that good is produced.
Answer: D
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Above the shutdown point, a competitive firm's supply curve coincides with its: a. marginal revenue curve. b. marginal cost curve
c. average variable cost curve. d. average total cost curve.
Brandon, Haley, Melissa, and Jeffrey each won $1,000 in their office football pool. According to Keynes's absolute income hypothesis, which of them would be most likely to spend the most out of their winnings?
a. Brandon, Haley, Melissa, and Jeffrey will spend the same out of their winnings b. Brandon, who earns $10,000 as a mail clerk c. Haley, who earns $25,000 as an account representative d. Melissa, who earns $50,000 as a software programmer e. Jeffrey, who earns $2 million as the CEO
Gresham's Law states that:
a. Good money tends to drive bad money out of circulation. b. Virtual and electronic money tends to drive physical money out of circulation. c. Bad money tends to drive good money circulation. c. In times of financial instability, nations should "gresham," which means to back their currencies by precious metals. d. In times of financial instability, commodity-backed money tends to drive electronic and virtual currencies from circulation.
If the central bank increases the money supply, then in the short run prices
a. rise and unemployment falls. b. fall and unemployment rises. c. and unemployment rise. d. and unemployment fall.