If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be
A. a negatively sloped straight line.
B. negatively sloped and "bowed inward" toward the origin.
C. negatively sloped and "bowed outward" from the origin.
D. a positively sloped straight line.
Answer: C
You might also like to view...
Head Start helps disadvantaged children in their preschool years
Indicate whether the statement is true or false
If supply is upward-sloping and demand is downward sloping, what happens to the equilibrium real risk-free interest rate and quantity of real loanable funds per time period if there is a decrease of financial international capital flows into a nation:
a. The real risk-free interest rate rises and the quantity per time period falls. b. The real risk-free interest rate rises and the quantity per time period rises. c. The real risk-free interest rate falls and the quantity per time period falls. d. The real risk-free interest rate rises and the quantity per time period does not change. e. The real risk-free interest rate rises and the quantity per time period is uncertain.
Two drawbacks in using fiscal policy as a stabilization tool are that fiscal policy can affect ________ as well as aggregate demand and that fiscal policy is ________.
A. consumption; too flexible B. potential output; offset by automatic stabilizers C. potential output; not flexible enough D. consumption; offset by automatic stabilizers
Fiscal policy
a. is dangerous in the short run because it crowds out investment spending b. can change equilibrium GDP in the short run c. can change equilibrium GDP in the long run d. can change equilibrium GDP in both the long and the short run e. is dangerous in the long run because it triggers a multiplier effect