If the production possibilities frontier is a straight line, then the
A. opportunity cost of producing one good is zero.
B. society is capable of producing only one of the goods and not the other.
C. producer can produce more of both goods simultaneously.
D. law of constant opportunity costs applies.
Answer: D
You might also like to view...
If total U.S. trade consists of $10 billion in electronics imports from Japan and $9 billion in automobile exports to Germany, then the U.S. net export account will be negative
a. True b. False Indicate whether the statement is true or false
Which of the following goods is the most liquid?
A. House B. Saving deposit C. Painting by Monet D. Antique sword from WWI
If resource prices are fixed and the selling price rises, then
a. profits will decrease. b. profits will increase. c. profits will remain constant. d. both profits and output will decrease.
If a central bank increases the money supply in response to an adverse supply shock, then which of the following quantities moves closer to its pre-shock value as a result?
a. both the price level and output b. the price level but not output c. output but not the price level d. neither output nor the price level