The quantity of shoes produced is measured along the horizontal axis of a PPF and the quantity of shirts is measured along the vertical axis. As you move down toward the right along the PPF, the marginal cost of
A) shoes decreases.
B) shoes increases.
C) shirts increases.
D) shoes and shirts is equal at the midpoint between the vertical and horizontal axis.
B
You might also like to view...
Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
If the quantity of loanable funds supplied is greater than the quantity demanded, then there is a
a. shortage of loanable funds and the interest rate will fall. b. shortage of loanable funds and the interest rate will rise. c. surplus of loanable funds and the interest rate will fall. d. surplus of loanable funds and the interest rate will rise.
Recall the Application about space debris in the atmosphere to answer the following question(s).Recall the Application. Which of the following is true?
A. Over 20,000 pieces of junk as large as a softball are estimated to be orbiting the earth. B. Modern global positioning satellites (GPS) are at risk of colliding with orbital junk. C. Solving the space junk problem will require international cooperation. D. All of these
What set of all possible combinations does the budget line show?
A. The set of all possible combinations that yield the same level of utility to the consumer. B. The set of all possible combinations that maximize a consumer's utility. C. The set of all possible combinations that can be purchased, given the consumer's income and the price of the goods. D. The set of all possible combinations that are equilibrium points.