A production possibilities frontier with a ________ shape indicates increasing opportunity costs as more and more of one good is produced
A) linear B) bowed outward
C) bowed inward D) perfectly horizontal
B
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A decrease in the supply of steel results in a shortage of steel at the original equilibrium price. Explain how market forces will act to eliminate the shortage
What will be an ideal response?
Perfect asset substitutability is the assumption that
A) the foreign exchange market is in equilibrium only when expected returns on domestic assets are greater than returns on foreign currency bonds. B) the foreign exchange market is in equilibrium only when expected returns on foreign currency bonds are greater than returns on domestic assets. C) the foreign exchange market is in equilibrium only when expected returns on all assets are negative. D) the foreign exchange market is in equilibrium only when expected returns on domestic assets are equal to returns on foreign currency bonds. E) the foreign exchange market is in equilibrium only when domestic assets are risk-free.
Alternate Outputs from One Day's Labor Input: United States: 12 bushels of wheat or 3 yards of textiles. Great Britain: 3 bushels of wheat or 12 yards of textiles. The opportunity cost of one bushel of wheat in Great Britain is a. 1 yard of textiles
b. 3 yards of textiles. c. 12 yards of textiles. d. 4 yards of textiles.
If income rises from 6.0 trillion to 6.4 trillion, consumption rises from 5.5 trillion to 5.8 trillion. What is the slope of the aggregate expenditure line? (Assume there is neither international trade nor any government)
What will be an ideal response?