Which of the following statements is true about production-possibility curves?
A. Constant-cost production-possibility curves are convex to the origin.
B. Constant-cost production-possibility curves are straight lines and usually lead to complete specialization under free trade.
C. Under free trade, bowed-out production-possibility curves are associated with partial specialization, because the opportunity cost of producing each good is constant along the curve.
D. Increasing-cost production-possibility curves provide us with information about consumer preferences.
Answer: B
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The increasing cost in the law of increasing cost is a(n) ____________ cost.
A. average B. fixed C. opportunity D. declining
Every government's set of policies used to govern their economy:
A. vary widely from one another, making international trade a simple process. B. vary widely from one another, making international trade sometimes difficult. C. are largely the same, making international trade a simple process. D. are similar in most respects, but different in a few areas, making international trade sometimes difficult.
The poverty rate for female households with no spouse present is approximately
a. 10 percent. b. 20 percent. c. 30 percent. d. 40 percent.
The Friedman natural rate theory holds that there is an inverse relationship between inflation and unemployment in the long run, but not in the short run
Indicate whether the statement is true or false