The table above shows the production possibilities for an economy
Drawing a PPF with books on the vertical axis and bread on the horizontal axis, a movement from possibility B to possibility C to possibility D shows the opportunity cost of ________ moving down along the PPF. A) books decreasing
B) bread decreasing
C) bread increases
D) books is constant
E) books and bread are both increasing
C
You might also like to view...
If firms in monopolistic competition are earning economic profits, then
A) they can expect to earn the profits indefinitely. B) new rivals enter the industry, and the demand for any seller's good decreases. C) the market demand becomes more inelastic. D) the industry is in long-run equilibrium. E) new rivals enter the industry, and the demand for any seller's good increases.
Why is responding to a financial crisis by bailing out financial institutions more effective than direct support of nonfinancial businesses?
What will be an ideal response?
Samantha quit her job in the city to look for a job in the country. While she is looking, Samantha experiences _______ unemployment.
A. Structural B. Seasonal C. Frictional D. Cyclical
Which of the following statements about marginal cost is correct?
a. If the cost to produce one more unit of output is lower than the previous average cost, then producing one more unit brings down the average. b. Marginal cost is a calculation of the cost of one unit of output, and therefore it can have no effect on average costs. c. As the cost per change in one unit of output increases, average costs of production decrease in an inverse relationship. d. The cost of producing one more unit of output decreases as output grows, whereas average costs rise with output.