If there is increasing opportunity cost, then when moving downward on a production possibilities frontier, the opportunity cost of the good on the horizontal axis ________ as more of the good is produced
A) increases and the PPF gets steeper
B) increases and the PPF gets flatter
C) decreases and the PPF gets steeper
D) decreases and the PPF gets flatter
E) does not change and the PPF gets steeper
A
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A valid argument against redistributing income to achieve complete equality is that: a. income equality would destroy the social cohesiveness that exists among different income groupings
b. this would eliminate the monetary incentives to work and produce. c. the cost of obtaining the equality would be so deflationary as to promote economic instability. d. income equality would imply class segregation based on factors such as sex or race, since income would be constant.
Which of the following helps to explain why the inflation fallacy is a fallacy?
a. Increases in the price level can be created by increases in money demand. b. Nominal incomes tend to rise at the same time that the price level is rising. c. As the price level rises, the value of a dollar falls. d. Inflation only changes nominal variables.
Which statement is true?
A. Perfect price discrimination is very common. B. Perfect price discrimination would eliminate consumer surplus. C. Charging different prices to senior citizens, children, and adults under 65 is an example of perfect price discrimination. D. None of the statements are true.
Money is not considered to be an economic resource because:
A. As such it is not productive B. Money is not a free gift of nature C. Money is made by man D. Idle money balances do not earn interest income