The fact of increasing opportunity cost when moving on the PPF means that
A) to increase the production of one product requires larger and larger sacrifices of the other good.
B) to decrease the production of one product requires smaller and smaller sacrifices of the other good.
C) to increase the production of one product requires smaller and smaller sacrifices of the other good.
D) when the government forces a movement from one point on the PPF to another point, no production is lost.
E) the PPF will be a negatively sloped straight line.
A
You might also like to view...
If the federal government's expenditures are less than its tax revenues, then
A) the budget is balanced. B) a budget surplus results. C) a budget deficit results. D) No conclusion can be drawn here regarding the budget surplus or deficit without information regarding government purchases versus other outlays.
The total amount of consumer surplus in a market is equal to the area below the market demand curve and above the market price
Indicate whether the statement is true or false
Which of the following is false?
a. Products with close substitutes have elastic demand b. Demand for individual brand is less elastic than industry aggregate demand c. Products with many complements have less elastic demand d. In the long run, demand curves become more elastic
If the interest rate on treasury bills is higher than the monetary policy rate, the quantity of overnight loans supplied ______ and the _______ for treasury bills increases.
A. Decreases; demand B. Decreases; supply C. Increases; demand D. Increases; supply