The concavity or bowed-out shape of the production possibilities frontier is the result of
a. the law of downward-sloping demand.
b. the law of upward-sloping demand.
c. the principle of increasing cost.
d. complementarity in consumption.
c
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With regard to the question "What were the lives of those who died in the Civil War (1861–1865) worth?" Hughes and Cain (2011) conclude that
(a) there is no way to answer this question because people have infinite worth. (b) an estimate can be made by calculating the value of the loss of "human capital." (c) the worth was close to zero because of the surplus of population that existed at the time. (d) the worth of Northern lives lost was greater because the Northerners were fighting against the evils of slavery.
The largest single portion of state and local budgets is devoted to
a. State and local defense. b. Health and public welfare programs. c. State and local unemployment compensation. d. Education. e. Interest payments on state and local debt.
Regarding U.S. health care costs, it is correct to say that: a. Americans pay more for health care than people in other developed countries
b. U.S. health care costs are growing faster than the growth in other countries. c. The level of health care costs are the source of fiscal pain that societies around the globe are experiencing. d. All of these statements are true.
If the economy moves into recession, monetarists argue that the Fed should
A. Keep the money supply growing at a constant rate B. Keep the money supply fixed C. Increased the federal funds rate