The slope of a production possibilities curve represents:
A) the marginal cost of producing the good measured on the horizontal axis.
B) the marginal cost of producing the good measured on the vertical axis.
C) the opportunity cost of producing the goods.
D) the ratio of the average cost of producing both goods.
C
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What will be an ideal response?
What event led to the end of the Great Moderation?
A. The Great Depression B. The Great Crash C. Stagflation D. The Great Recession
Tommy spends most of his monthly budget on $3 video game rentals or $6 packets of baseball cards. The opportunity cost to Tommy of an extra packet of baseball cards is
A. one video game rental. B. two video game rentals. C. the cost of the baseball cards. D. he does not incur an opportunity cost.
Compared to the Keynesian transmission mechanism, the monetarist transmission mechanism is
A) indirect and long. B) direct and long. C) direct and short. D) indirect and short.