The table above presents the production possibilities frontier for a nation. Using the information in the table, when moving from possibility A to B to C to ultimately E, the cost of a unit of capital goods in terms of consumption goods
A) decreases.
B) increases.
C) remains the same.
D) decreases from possibility A to C, and then increases from possibility C to D.
E) cannot be calculated.
B
You might also like to view...
If Billy Bob's National Bank of Slingblade confronts a 10 percent reserve requirement and has excess reserves of $20,000, what is the maximum amount of additional loans that the bank can extend?
a. $2,000 b. $18,000 c. $20,000 d. $200,000
Paying efficiency wages means that wages are
a. above equilibrium, and profits are higher than otherwise. b. above equilibrium, and profits are lower than otherwise. c. below equilibrium, and profits are higher than otherwise. d. below equilibrium, and profits are lower than otherwise.
According to the aggregate demand and aggregate supply model, in the long run a decrease in the money supply leads to
a. decreases in both the price level and real GDP. b. an increase in real GDP and an increase in the price level. c. a decrease in the price level but does not change real GDP. d. an increase in the price level but does not change real GDP.
The duration of an unemployment spell is a measure of the:
A. length of time a spell of unemployment lasts. B. number of workers unemployed during a specific period of time. C. income lost while unemployed. D. number of times during a year a worker becomes unemployed.