The law of increasing opportunity cost implies that
A. producing additional units of one good results in proportionately smaller reductions in output of the other good.
B. the production possibilities curve will be a straight line.
C. the society will be producing on its production possibilities curve.
D. producing additional units of one good results in increasing amounts of lost output of the other good.
Answer: D
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Which of the following statements is correct? Classical economists
a. believe demand as well as supply determines aggregate output. b. believed in an active role for government in managing the economy through tax policy. c. gave little explicit attention to factors that determined the overall demand for commodities. d. were worried about depressions that could come about because of too little government consumption.
One of the remedies that has been used in the case of antitrust violations is the award of treble damages to the party that has been harmed
a. True b. False
An increase in the wealth of households, other things remaining the same, can result in ____ the consumption function
a. no effect on b. an upward shift in c. a movement to the left along d. a downward shift of
The rules established under GATT are enforced by the
a. governments of the nations that are involved in GATT. b. North American Free Trade Association. c. World Trade Organization. d. European Union.