When a production possibilities frontier is bowed outward, the opportunity cost of one good in terms of the other depends on how much of each good is being produced
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
The used car market without warranties suffers from
A) perfect competition. B) oligopoly. C) adverse selection and moral hazard. D) excessive signaling.
If the price level does not fall or only falls very slowly, then the result will be a prolonged period of
a. inflation whenever supply increases. b. production below potential GDP. c. production above potential GDP. d. rapid price increases when demand changes.
Assume a simple macroeconomic model. When inventories rise unexpectedly,
A. income is above its equilibrium value. B. income will rise until it reaches its equilibrium value. C. total spending is higher than total output. D. total output is less than spending.
Saving is $15 billion at the $125 billion equilibrium level of output in a closed, private economy. Actual investment must be:
A. Less than saving B. Greater than saving C. Equal to $15 billion D. Equal to $125 billion