If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be
A. a negatively sloped straight line.
B. negatively sloped and "bowed inward" toward the origin.
C. negatively sloped and "bowed outward" from the origin.
D. a positively sloped straight line.
Answer: C
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When the economy is at an above full-employment equilibrium, ________
A) nominal GDP exceeds real GDP B) an inflationary gap exists C) a recessionary gap exists D) real GDP is less than potential GDP
If a firm is experiencing diseconomies of scale, its long-run marginal cost curve is upward sloping
a. True b. False
The quantity measure in the aggregate demand relationship is the:
A. total quantity of goods and services demanded in the economy. B. total quantity of goods and services supplied in the economy. C. market value of the total quantity of goods and services demanded in the economy. D. market value of the total quantity of goods and services supplied in the economy.
Which of the following will decrease aggregate demand?
a. exports rising faster than imports b. exports falling faster than imports c. exports rising the same amount as imports d. exports rising and imports falling