Along a straight-line production possibilities curve:
a. the opportunity cost of production of a good is zero
b. the opportunity cost of production of a good falls as its output increases.
c. the opportunity cost of production of a good rises as its output increases.
d. the opportunity cost of production of a good is constant.
d
You might also like to view...
All of the following factors are held constant when price changes on a demand curve except:
A) income. B) quantity demanded. C) population. D) tastes and preferences.
If the world economy expands so that foreign demand for U.S.-made goods increases, in the short run what will happen to aggregate demand, the price level, and real GDP in the U.S.?
What will be an ideal response?
Suppose that the United States can make 15 cars or 20 bottles of wine with one year's worth of labor. France can make 10 cars or 18 bottles of wine with one year's worth of labor. From these numbers, we can conclude that
a. the United States has a comparative advantage in the production of cars. b. France has a comparative advantage in the production of wine. c. the United States has an absolute advantage in the production of cars. d. All of the above are correct.
The original Phillips curve implied or assumed that
A) the markup over labor costs was zero. B) the expected rate of inflation would be zero. C) the actual and expected rates of inflation would always be equal. D) all of the above E) none of the above