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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What critical resource is likely to be the culprit for the impending doom of Social Security regarding tax collection? Explain
What will be an ideal response?
Suppose the price level in the United States falls while price levels elsewhere in the world remain unchanged. Our demand for imports would rise and our demand for domestic goods would fall
Indicate whether the statement is true or false
Exhibit 7-15 Long-run average cost
In Exhibit 7-15, diseconomies of scale are shown in the range of:
A. 0 to 500 units per week. B. 500 to 1,000 units per week. C. 1,000 to 2,000 units per week. D. zero per week.
The figure above illustrates the effect of an increased rate of money supply growth at time period T0. From the figure, one can conclude that the
A) liquidity effect is smaller than the expected inflation effect and interest rates adjust quickly to changes in expected inflation. B) liquidity effect is larger than the expected inflation effect and interest rates adjust quickly to changes in expected inflation. C) liquidity effect is larger than the expected inflation effect and interest rates adjust slowly to changes in expected inflation. D) liquidity effect is smaller than the expected inflation effect and interest rates adjust slowly to changes in expected inflation.