The law of increasing opportunity costs implies that:
a. a production possibilities curve will be bowed inward toward the origin
b. a production possibilities curve will be bowed outward away from the origin.
c. a production possibilities curve will be a straight line.
d. a production possibilities curve will be upward sloping.
b
You might also like to view...
The following diagram shows the rate of inflation each year during a five-year span. Use this diagram to answer the next question.
How fast did prices rise in Year 2?
A. -2% B. 6% C. 4% D. 2%
Four companies dominate the market for robotic lawn mowers. Each company takes a different action. Which action is most likely to present a barrier to potential entrants to the industry?
a. Firm A obtains a patent on the technology it uses in its robots. b. Firm B discovers a cost-saving process that also speeds production. c. Firm C becomes the price leader in the industry and raises its prices. d. Firm D uses game theory strategies to predict the actions of its rivals.
If home prices rise far above the value of the homeowner's mortgage loan,
A. homeowners will be tempted to default on their mortgage loans. B. default risk faced by lenders tends to decrease. C. homeowners will have greater difficulty obtaining a home equity line of credit. D. default risk faced by lenders tends to increase.
In drawing a supply curve, the labels for the axes are
A. price (on the vertical axis) and quantity (on the horizontal axis). B. price (on the horizontal axis) and quantity per unit of time (on the vertical axis). C. price (on the horizontal axis) and quantity (on the vertical axis). D. price (on the vertical axis) and quantity per unit of time (on the horizontal axis).