What does the slope of the production possibilities curve represent? Explain
What will be an ideal response?
It represents the trade-off between two goods from two points on the PPC. Specifically, as we move from one point to another, in order to produce more of one good, we must trade-off or give up the other good. If the trade-off is constant, then the slope is constant along the PPC and the PPC is a straight line. If the trade-off increases, then the slope is increasing along the PPC and the PPC is bowed outward.
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The ________ the returns on two securities move together, the ________ benefit there is from diversification
A) less; more B) less; less C) more; more D) more; greater
Suppose Always There Wireless serves 100 high-demand wireless consumers, who each have a monthly demand curve for wireless minutes of QdH = 200 - 100P, and 300 low-demand consumers, who each have a monthly demand curve for wireless minutes of QdL = 100 - 100P, where P is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always There Wireless charges $0.25 per minute. How much can Always There Wireless charge as a fixed fee without losing the low-demand consumers?
A. $9.38 B. $28.13 C. $153.13 D. $1.00
The U.S. economy experienced the Great Depression in the:
A. 1910s. B. 1940s. C. 1920s. D. 1930s.
If the price level is fixed, changes in nominal income and changes in real income ______.
a. have an inverse relationship because there are no changes in aggregate supply. b. remain equal because there is no rate of inflation to account for. c. remain equal because aggregate income will neither rise nor fall. d. have an inverse relationship because full employment has been reached.