If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be
A. a negatively sloped straight line.
B. negatively sloped and "bowed inward" toward the origin.
C. negatively sloped and "bowed outward" from the origin.
D. a positively sloped straight line.
Answer: C
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Which of the following raises the equilibrium price and increases the equilibrium quantity of used cars?
A) a fall in income if used cars are an inferior good B) an increase in the wage rate paid to used car salespeople C) neither of the above because the question suggests a violation of the "law of demand" D) neither of the above because the question suggests a violation of the "law of supply"
The equality-of-sacrifice doctrine of taxation is based on the
a. increasing marginal utility of income. b. increasing marginal utility of government transfer payments. c. diminishing marginal utility of income. d. diminishing marginal utility of government transfer payments.
Which of the following could cause the money supply to decrease?
A. The economy emerges from a recession into rapid growth. B. The society moves to a cashless society. C. Banks become more conservative in making loans. D. People and institutions borrow more.
In the financial crisis that started in 2006, a significant indicator of the U.S. economic decline was:
A. a significant drop in interest rates. B. a sharp increase in unregulated Ponzi-type security sales. C. rising defaults by subprime mortgage borrowers. D. a large increase in loan default due to unemployment.