How does an economy represented by a straight-line production possibilities curve differ from one represented by a traditional production possibilities curve with a bowed shape?
A) In the economy represented by a straight-line production possibilities curve, there is no opportunity cost.
B) In the economy represented by a straight-line production possibilities curve, neither good is scarce.
C) In the economy represented by a straight-line production possibilities curve, the law of increasing relative cost does not apply.
D) In the economy represented by a straight-line production possibilities curve, changing the amount of resources devoted to the production of each good will not alter the amount of each good actually produced.
Answer: C
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a. liquid assets b. hard assets c. corporate assets d. marketable securities e. none of the above
Large income differences will be eradicated if the market mechanism is working well
a. True b. False Indicate whether the statement is true or false
Which of the following features is associated with imperfect competition?
a. Homogeneity of products b. Positive economic profits c. Freedom of entry and exit d. Large number of firms
A worker who loses a job at a call center because business firms switch the call center to another country is an example of:
a. Cyclical unemployment b. Frictional unemployment c. Disguised unemployment d. Structural unemployment