When a production possibilities frontier is bowed outward, the opportunity cost of producing an additional unit of a good
a. increases as more of the good is produced.
b. decreases as more of the good is produced.
c. does not change as more of the good is produced.
d. may increase, decrease, or not change as more of the good is produced.
a
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In the Battle of the Sexes game, there
a. are two Nash equilibria, neither of which is Pareto optimal. b. is one Nash equilibrium and it is not Pareto optimal. c. is one Nash equilibrium and it is Pareto optimal. d. are two Nash equilibria, both of which are Pareto optimal.
What is the value of marginal profit at the profit-maximizing output?
which of the following is the incorrect statement
a. during a period of inflation, prices are always rising b. when inflation is decreasing, prices are always falling c. if the inflation is constant, prices are neither rising or falling d. a and b are incorrect e. b and c are incorrect
The Federal Reserve can increase the money supply by:
A. increasing the discount rate. B. conducting open market sales. C. reducing reserve requirements. D. eliminating deposit insurance.