The production possibilities curve bows outward because
A) opportunity costs are decreasing as the production of a good increases.
B) opportunity costs are increasing as the production of a good increases.
C) opportunity costs are fixed as the production of a good increases.
D) resources are of uniform quality.
B
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A comic book company pays an annual licensing fee of $10,000 for the rights to an artist's character. Which would have the bigger effect on the readers of that character's comic: an increase in printing costs or an increase in the artist's licensing fee? Explain.
What will be an ideal response?
In practice, the Federal Reserve keeps the discount rate close to the ________ rate in order to avoid large swings in borrowed reserves by banks
A) inflation B) prime C) six-month Treasury bill D) federal funds
In the economic way of thinking, a rise in the real output of final goods and services can be associated with
A) a fall in the price level. B) a rise in nominal GDP. C) a rise in the price level. D) a fall in nominal GDP. E) any of the above.
As of 2008, the members of the WTO account for 97 percent of the world's international trade
Indicate whether the statement is true or false