As you move down the production possibility frontier, the absolute value of the marginal rate of transformation
A. increases.
B. initially decreases, then increases.
C. decreases.
D. initially increases, then decreases.
Answer: A
You might also like to view...
If a shortage exists in a market then: a. the price is below equilibrium
b. the quantity demanded exceeds the quantity supplied. c. the price will rise in the near future. d. all of the above.
A typical American worker covered by unemployment insurance receives 50 percent of his former wages for 52 weeks
a. True b. False Indicate whether the statement is true or false
The slope of the demand for loanable funds curve represents the
a. positive relation between the real interest rate and investment. b. negative relation between the real interest rate and investment. c. positive relation between the real interest rate and saving. d. negative relation between the real interest rate and saving.
In accordance with the law of supply, if the price doubled, the quantity supplied would generally
a. rise. b. fall. c. double. d. drop by half.