If the production possibilities curve is a straight line,
a. opportunity costs rise as output of either commodity is expanded.
b. resources are not equally productive in the production of both goods.
c. opportunity costs are negative.
d. resources can be moved from the production of one good to production of others with no loss of productivity.
d
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Economics can be viewed as a way to think about problems
Indicate whether the statement is true or false
Assume that national income = $4,000 . C = $500 + 0.80(Y), and intended investment = $200 . Then all of the following are true except
a. saving at Y = $0 is -$500 b. national income will increase c. there will be $100 of unplanned investment in inventories d. actual investment will equal $300 e. production will decrease
A price elasticity of zero corresponds to a demand curve that is:
A. horizontal. B. vertical. C. downward sloping with a slope always equal to 1. D. either vertical or horizontal.
The quantity of real GDP supplied ________ when the price level increases because ________
A) increases; the real wage rate falls B) decreases; investment increases C) increases; the quantity of money increases D) increases; aggregate demand increases E) decreases; the real wage rate rises