A bowed-outward production possibilities curve demonstrates the concept of
A) constant opportunity costs as production shifts from the production of one good to the production of the other good.
B) decreasing opportunity costs as production shifts from the production of one good to the production of the other good.
C) increasing opportunity costs as production shifts from the production of one good to the production of the other good.
D) increasing opportunity costs at first but the opportunity costs steadily decrease as you move down along the curve.
C
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The evidence available suggests that the effects of devaluation appear to differ across countries and time so that no strong generalizations regarding the effects of devaluation on the balance of trade and/or balance of payments are possible
Indicate whether the statement is true or false
The excess of total credits over total debits in the current and private capital accounts is called the
A) BOP deficit. B) BOP surplus. C) official settlements account surplus. D) official settlements account deficit.
In economics, capital refers to
a. the finances necessary for firms to produce their products. b. buildings and machines used in the production process. c. the money households use to purchase firms' output. d. stocks and bonds.
Briefly explain the components that make up the increase in producer surplus when there is a rise in price.
What will be an ideal response?